Fernandez was in the running to star as Edward Cullen in Catherine Hardwicke's vampire romance, but eventually lost out on the part to Robert Pattinson.
However, the 26-year-old told DS that he was happy the audition led to him being cast by Hardwicke in this week's Red Riding Hood.
"I think at the time of course you're disappointed. It's a fantastic role, to miss out on the opportunity to work with Catherine was really the disappointing thing," Fernandez said of his experience with Twilight.
"Luckily she kept me in mind [for Red Riding Hood]. I think this was a better fit for me to work with her. I'm just grateful for that."
Watch Shiloh Fernandez discuss Twilight below:
More Red Riding Hood:-
> Interview: Amanda Seyfried, Catherine Hardwicke
> Shiloh Fernandez, Max Irons interview