In the end the job went to former France coach Laurent Blanc, with Di Matteo saying that the time was not right for him to get back into management.
"Did I refuse PSG? There were contacts with Paris, but you can't say I refused," he told France Football.
"We reached a point when I had to think to reply yes or no. PSG made an excellent choice with Laurent Blanc. The Parisian project is very exciting.
"It is my choice to have no club. I have made the decision to not join any club this summer. It was not easy because I received very good and very exciting offers. But it was a choice for my family. I am still young and I will have a lot of time to coach."
Di Matteo has been out of work since being sacked by Chelsea in November 2012.