The Posh playmaker is reported to have been the subject of several approaches from Parkhead during the summer transfer window - all of which were knocked back.
Tomlin concedes that his head was turned by the interest, as a switch to Celtic would have provided him with an opportunity to challenge for major honours and compete in the UEFA Champions League.
Peterborough, though, were unwilling to enter into negotiations - leaving boyhood Celtic fan Tomlin in a difficult situation.
Recounting how events unfolded in the Daily Record, he said: "I woke up that Saturday morning and as usual I couldn't wait for the game (against Crawley Town). But then my phone rang and I was told Celtic had made a £1.2m bid for me.
"All I could think of on the way was what the move would do for me and my family. It was a move that would change everyone's life.
"It was all I could think about as this was a team I'd supported as a boy and when I got to the ground I had a meeting with the gaffer (Darren Ferguson).
"I told him I couldn't think straight because of what was going on but he straight away told me to forget it as the bids weren't big enough and I wouldn't be going anywhere.
"This was different in my mind, though, and I was hooked at half-time. Even sitting in the stand I was hearing stuff about the bids increasing to £1.6m and then £2.1m and I thought that was great money for the club considering I only cost them £150,000."
Tomlin, who continues to be linked with a January switch to Celtic, added: "This was something I'd dreamed of and I just thought the manager was being horrible towards me. We had a big row and I told him I'd never play for him again.
"On the Monday morning I turned up for training and apologised to the manager. He knew I had said stuff in the heat of the moment, so there was no problem with us.
"It wasn't going to do my career any good by refusing to play anyway. It took me a good couple of months to get over it but I want to help the club back into the Championship.
"I still have dreams to play in the Premier League, I'd love to play for England."