"How can a coach tell his player to lower his game. I have never said that," Colaco said.
"I just told him to get used to our style of play and he misunderstood me. He is an attacking midfielder and prefers playing in the 4-4-1-1 formation, but we play the 4-4-2 game," he added.
Ricketts had hit out at the Dempo team management via his Twitter account.
"My game and style of play is too advanced for my team mates and I have to bring my level down so I can adapt??? This is what I've been told!" the 29-year-old tweeted.
Colaco's response was laced with sarcasm.
"He is good in writing," the Goan said, adding "this could have been sorted out within the team management."
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Referring to the showcause notice issued to him by the AIFF for "trying to enter the pitch forcibly" during an I-League match, Colaco took an apparent dig at the federation saying this is "how Indian football works".
"I never tried to enter the pitch. As a coach it's but natural to get excited at times. But you can see the video clippings on the bangla channel. Someone called Neetu (had complaint)... This is how Indian football works," Colaco said.
The most successful club coach in the country was in the Capital for Dempo's sixth-round game against ONGC.
Colaco was asked to reply to the showcause notice after his side's game against East Bengal. If found guilty, the Goan will have to sit out for at least 2-3 matches.
"I will reply soon, 21st November is the date."
In response to Colaco's remark, an AIFF official stated: "The notice was sent after 4-5 hours and only after watching the video clippings."