Nagelsmann will take up the managerial role at RB Leipzig for the 2019-2020 season, but the German has claimed that he could have joined Real Madrid this summer.
"Madrid called me," Nagelsmann told 11Freunde. "Who would hang up the telephone? Universe Football Club doesn't exist, so there's no bigger club than Real Madrid.
"But I am 31 years old, I will have another chance. I didn't want to move countries. If my coaching career continues reasonably, you may have another chance to take on a club in this category later. Also for family reasons, it did not fit so well to go abroad.
"The big problem of our society is the tendency for maximisation. It's all about having more than your neighbour. To have the biggest car, the biggest bank account, the biggest house. I do not want to be there."
Nagelsmann has steered Hoffenheim to back-to-back top-four finishes in the Bundesliga, and will lead the German club in the group stages of the Champions League next season.