The singer has reunited several times with his former Sex Pistols bandmates for tours in the last 15 years, but has insisted that the 'God Save the Queen' group will never release another album of new material.
"[The tours were] to clear up some old animosities, the very reason we fell apart originally. We just wanted to learn to appreciate each other in a different light," Lydon told Rolling Stone.
"Unfortunately, the tour went on too long, and it crept back in to all the old problems. It became very staid and tired for me and it felt like it was a job."
He further explained: "I couldn't write new songs in a Sex Pistols context. I love singing them old songs, because they're very poignant and a very pertinent part of history belongs to the Sex Pistols.
"If I write new songs, it's PiL and that's it. Occasionally, a re-enactment is a fine thing. I love Civil War re-enactments."
Lydon recently released Public Image Ltd's first album in two decades and will be touring Europe throughout the summer.
He also recently slated talent competitions like American Idol and The Voice by calling them humiliating.
Watch the Sex Pistols perform 'Pretty Vacant' below: