The German World Cup winner was said to be keen on leaving Bayern in 2009, with Manchester United one of a number of English teams believed to have made an approach.
However, Lahm decided to remain with the German outfit and has gone on to win three Bundesliga titles and the Champions League.
"I did think about England before that and there were some interesting possibilities," he told the Daily Mail.
"But Bayern are my hometown club and I was convinced we were on to a good thing again.
"I felt we had the chance to win the Champions League. I'd rather win it with my club than any other. Thankfully my decision turned out to be the right one."
Lahm retired from international duty after winning the World Cup in Brazil this summer.