It was reported earlier this month that the grime star would feature on the Channel 5 reality show in the New Year after bosses decided they wanted a rapper in the house.
However, he has now said that despite considering an appearance, he knew "in his heart" that it was the wrong move for his career.
Stryder told The Sun: "I asked myself whether people I respect would go on a show and I decided that they wouldn't.
"I respect myself for making this decision because they offered me a lot of money. Then, when I decided to go back and say no to the show, the money doubled.
"But music is my first thing and I love the people that support me and just know in my heart it wasn't the right thing to do."
Former X Factor contestant Frankie Cocozza, Nicola McLean, Lindsay Lohan, Natasha Giggs, The Only Way is Essex star Kirk Norcross and Loose Women's Denise Welch are among the other names rumoured to be taking part in the show.
Celebrity Big Brother will return to Channel 5 on January 5, 2012.
Watch the latest Celebrity Big Brother trailer below: