A source tells PEOPLE that the Bravo star was in talks to be on the next season of the hit dance competition series but "she didn't do it because she didn't want to be away from her girls."
"Her focus is family," the source adds. "Her kids are in school and she would not have wanted to be away from them, even for a couple days a week. She sacrificed a nice paycheck to be home with her girls."
A DWTS insider says no formal offer was ever made.
However, Giudice will return to The Real Housewives of New Jersey this year: Season 7 is currently in production and has been shooting since Giudice, 43, was released from prison Dec. 23 after serving a nearly year-long sentence for fraud charges.
VIDEO: She's Back! Teresa Giudice Wishes Fans a Happy New Year in First Tweet Since Her Release from Prison
The mom of four, whose house arrest ended Friday, has been enjoying time with her family since her release, ahead of her husband Joe Giudice's 41-month prison sentence, which begins in March.
Dancing with the Stars season 22 premieres Monday, March 21 at 8 p.m. ET on ABC, and The Real Housewives of New Jersey will return later this year.
With reporting by PATRICK GOMEZ