"They left the decision down to me, and I had to decide whether I wanted to be a coach or a player," Britton told BBC Sport.
"I thought long and hard about it and while I enjoyed the coaching experience and learnt a lot in a short space of time, I still feel I can have a positive impact on the pitch as a player.
"I think that will be more beneficial to the club at this stage of the season. I am not ready to retire as a player yet, so I will review things again at the end of the season."
Britton, who joined the Swans coaching setup under Paul Clement, faces a week of rehab following a calf injury and is expected to rejoin training after the FA Cup tie at Wolves on January 6.