The manager worked under possible new Blues owner while at QPR, and left the door open for a reunion as director of football should the Italian complete a takeover of the club
The former Leeds United manager, who worked under Paladini at QPR, has been linked with a director of football position at St Andrew's and believes his experience in the game would lend itself to the job.
"No," he told talkSPORT when asked if he would rule out the possibility. "I think there is a role [upstairs] for people who have got experience.
"With all the new owners coming into the game, I think a manager needs a bit of help. When you look at the [average] tenure of a manager in the Championship, it's 15 months.
"It is something that I have always thought about. I didn't know I would enjoy working with the likes of talkSPORT, BT Sport - I'm enjoying that sort of side.
"[But] with a director of football role you don't have to be at the ground every minute of the day. A lot of things are on the computer and everything else.
"I think there is a role for some of the lads that have finished full-time in football to help out some of the managers."
Paladini is continuing his bid to buy Birmingham from current owner Carson Yeung after having a £30 million offer turned down more than a year ago.