Todt left his post at the helm of the Italian squad ahead of the start of this season, and he was replaced by Stefano Domenicali.
Seven-time champion Schumacher, who retired from Formula One racing at the end of 2006, admitted he could have replaced Todt, but the German said the job would have taken up too much of his time, so he decided to turn down the offer.
"I had a possibility to do what Jean Todt was doing, to become director of Ferrari for the racing part," Schumacher told the International Herald Tribune in an interview.
"And when I saw how much passion and dedication that he put into his job - similar to what I did in my job - but he simply was just sitting in Maranello, day by day, even on weekends, late into night - I said: 'Do I need this? Simply not. Simply not."'
Schumacher, who has been racing bikes occasionally since his retirement, added that he is not interested in focusing in just one project right now.
"I don't want to be focused straightaway on a different project. I just want to be free and see what is the next thing that I want to do in my life. I'm free right now; I choose what I want to do," Schumacher added.
But the former champion acknowledged that he will need to find a new challenge he is passionate about.
"I'm sure something will come up that will interest me in a way that I will have passion for," he said. "I need this passion, otherwise I don't want to just sit at an office desk and pass the time."
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