Out of a job since his second, unsuccessful stint at Wolfsburg ended less than a year ago, Magath said he could not see himself coaching another club, especially in Germany.
"You should never say never," Magath, renowned for his gruelling training methods during almost two decades in the German top division, told Die Welt newspaper.
"But I cannot see myself working again as a coach. I cannot see the job that would be so attractive to take me away from my family again. Certainly not in Germany."
Magath, who scored the only goal as Hamburg SV won the European Cup in 1983 and was a World Cup runner-up with Germany in 1982 and 1986, has coached a string of Bundesliga teams since 1995.
He became the first Bayern Munich coach to lead the team to back-to-back domestic doubles in 2005 and 2006.
The former offensive midfielder, who will turn 60 on Friday, then took over Wolfsburg in 2007, sensationally steering them to a maiden Bundesliga title in 2009.
A hapless stint at Schalke was then followed by another spell at Wolfsburg before his sacking in 2012.
"When I was forced to leave Wolfsburg (in 2012) I wanted to take over another team after a short pause," said Magath, who has also coached Werder Bremen, VfB Stuttgart and Eintracht Franfurt.
"Meanwhile I am not sure whether I want this anymore. Back to that mill of permanent internal and external pressure, back to this partly blind dependence on accidents, on whether player X will hit the ball on the day."
Magath said he would have liked to have coached abroad.
"I have coached everything from minor leagues to Bayern Munich," he said.
"I always wanted to go abroad but as a coach you would need to know the language. I speak tolerable English but the tendency of Premier League clubs hiring a German coach is not great."