The 43-year-old actress was offered a role in Rajnikant's upcoming film 'Rana'.
"Would have loved to do a film with Rajnikanth but the role was that of his sister... need to wait for the right role," Madhuri posted on micro-blogging site Twitter.
'Rana', a Tamil historical action film to be directed by KS Ravikumar stars Rajinikant, Deepika Padukone and Sonu Sood. The film will be jointly produced by Ocher Picture Productions and Eros International.
Madhuri has worked with the 61-year-old veteran in 'Uttar Dakshin' in 1987.
With filming will start in April this year, the movie is expected to be simultaneously made in Hindi and dubbed in Telugu. All three versions are slated for release in 2012.
Madhuri is currently judging a television dance reality show 'Jhalak Dikhlaa Jaa'.