The leadership contender, who resigned from the shadow cabinet in 2016 in protest at Mr Corbyn's leadership, said she had quit because his supporters been "absolutely determined to fight" his opponents "until one of the other had been smashed".
Ms Nandy has said she is "seriously thinking about" standing to replace Mr Corbyn when the leadership election formally gets underway in January.
She has been critical of the party's Brexit position and argued that Labour has lost touch with working class communities.
Ms Nandy is likely to face questions from Labour members, who still largely support Mr Corbyn, over her decision to join more than 20 others in resigning from the shadow cabinet in a move that allies of the Labour leader described a "coup".
The resignations lead to a vote of no confidence in the party leader and a leadership contest, in which Ms Nandy backed Mr Corbyn's only rival, Owen Smith.
Commenting on her decision to resign, she she insisted that she had only done so after going to speak to Mr Corbyn and realising that his team would not make any compromises.
She said: “One side had picked a fight and the other side was absolutely determined to fight it until one or the other and been smashed. And I could see where that was heading. You can’t win elections like that."
Ms Nandy also warned that Labour faced a "hard road back" to power after suffering it's worst result in 85 years at last week's general election.
She told The Guardian: “In all honesty, Brexit just played into the sense that we are adrift from communities like these, that we don’t speak for them, we don’t stand for them, we don’t understand them, and worse than that, we’re deeply disrespectful towards them. And that has been building for the last 15 to 20 years.
“It’s been a long time in the making, I hope it won’t take a long time to resolve. But it’s going to be a hard road back.”
The Wigan MP was particularly critical of Labour leadership's decision to support a second referendum,
She said. “Once we adopted the position of a second referendum, there were a lot of Labour candidates in seats that voted overwhelmingly to leave who knew that they didn’t stand a chance of winning the election."
She also crticised the party's election manfiesto, saying a major pledge to offer free broadband for every home and business had “missed the mark for people who are struggling with so many other things in their daily lives at the moment”,
Ms Nandy is expected to race stiff competition from current shadow cabinet ministers Sir Keir Starmer and Rebecca Long-Bailey if she does decide to stand for the leadership. Emily Thornberry, the shadow foreign secretary, and Clive Lewis, a shadow Treasury ministers, have already announced their bids.