The 47-year-old openly gay singer said that a child might find it 'embarrassing' to have him as a father, but congratulated Elton John on the arrival of his baby boy David.
He told BBC Radio 2, 'I've got godchildren. Thank God I didn't have children - can you imagine being George Michael's son or daughter.
'I don't think having Elton as your dad would be as embarrassing as having George Michael as your father.
'I congratulate Elton, I'm very happy for him, but it's not something in my future.'
He also admitted that his biggest fear in life is grief, and that perhaps having a child could have helped him understand it more.
'I hope to God the people around me will stay healthy and well - my biggest fear since my late 20s has been more grief. I always knew I was going to be one of those people who didn't deal with that at all well,' he said. 'I think if you have children maybe you deal with grief better. You understand the cycle better.'