Bailey was the Power's defensive coach from 2002-2007 and a key architect of the club's 2004 premiership.
The Power will wear black armbands against Carlton in their round one clash on Sunday night in honour of Bailey, who died early on Tuesday morning,
As one of the club's most important players and defenders during Port's premiership window, Wanganeen worked closely with Bailey during his time at Alberton.
He also played alongside Bailey during his first two seasons (Bailey's last) at Essendon in 1991-1992.
"I'm just really lost for words," Wanganeen told AFL.com.au.
"My dealings with Dean had always been great ones, he was a true gentleman and one of the nicest guys you'll ever meet.
"My heart goes out to his family and what can I say? It's hugely deflating and it just shakes you up a lot.
"It's just a sad day for all people who knew Dean – he was just such a great person."
Under Bailey's control, Port leaked fewer goals than any other side in 2003 (11.6) and 2004 (11.7) and third fewest in 2002 (12.2).
Wanganeen credited him as having an integral hand in forming one of the League's best defensive groups in the years leading up to the Power's maiden and only AFL flag.
"He was our defensive coach so I had a lot to do with him, we had a pretty good backline unit because of him and his input," he said.
"He was the one who guided us and gave us structures to follow and he was a great leader there.
"We had one of the best defences in the competition, not only that year (2004) but the previous couple of years as well.
"He was outstanding at what he did as a coach and as a defensive coach for me over those few years."
Ultimately though, Wanganeen said he would remember the fun he shared with Bailey.
Just as Adelaide CEO Steven Trigg paid homage to Bailey's dry sense of humour, Wanganeen laughed as he recounted in-jokes and nicknames shared with his former mentor.
"When I think of Dean, I think of the jokes and some of the personal jokes we had that only him, myself and a couple of other guys would understand," he said.
"Every time we saw each other we had a name for each other and all those things just come flooding back when you hear this news.
"Like I said, I'm lost for words and my heart just goes out to his family."