Former France international Laurent Blanc was eventually named as successor to Carlo Ancelotti, but Di Matteo says he had pondered a move to the French capital.
The Italian was sacked by Chelsea in November 2012, barely six months after piloting the Blues to their first Champions League triumph.
Also linked with Leeds and Reading since leaving Stamford Bridge, Di Matteo says the PSG offer was one of several "exciting" opportunities he has considered.
"Did I refuse PSG? There were contacts with Paris, but you can't say I refused," the 43-year-old 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."