The legendary writer was offered the deal in return for allowing certain concessions.
"They offered me the rights to Watchmen back, if I would agree to some dopey prequels and sequels," Moore told Underwire.
"So I just told them that if they said that 10 years ago, when I asked them for that, then yeah it might have worked. But these days I don't want Watchmen back. Certainly, I don't want it back under those kinds of terms."
It is rumoured that the departure of Paul Levitz as DC president and publisher has removed the obstacles against a Watchmen sequel, as well as the reintegration of Vertigo characters into the mainstream DC Universe.
DC has made it clear that, ideally, Moore and co-creator Dave Gibbons would be involved in producing a sequel.
The V for Vendetta writer has a famously stormy history with the publisher.
He revealed that he no longer keeps a copy of Watchmen in his house.