With the position being vacant since Pep Segura relinquished his duties in July, Puyol was touted as the possible replacement for departed Segura after several talks.
And taking much time to ponder about the club's decision to honour him with such title, Puyol has come out to reject the petition put before him by his former side.
“In recent weeks, different news about my possible incorporation at Barcelona as sporting director has been published," Puyol tweeted.
“This is why I feel obliged to communicate to the whole family that, after weighing [the offer] up a lot, I have decided not to accept the club's offer.
“It wasn't an easy decision, given that I have always said that I would like to return to what I consider my home, but different personal projects in which I find myself immersed in impede me at this moment from giving the exclusive dedication that the post deserves.
"I would like to thank the club for the trust placed in me by offering me this position of so much responsibility."
Spending thirteen years at the Camp Nou the 41-year-old featured 593 times across all competitions for Barcelona and also recorded 100 appearances for the Spanish national team, winning the 2008 Euros and 2010 World Cup.
Puyol, who spent all his club football career with Barcelona and retired at the end of 2013/14 season won three Champions League glories, six LaLiga titles and two Copa del Ray honours.