The "Slumdog Millionnaire" director was nominated for the special honour by representatives of the UK government's arts and media honours committee for his work on the 2012 London Olympic Games Opening Ceremony, reported Daily Telegraph.
He apparently hinted at the snub during an interview telling the host that it is unlikely he will ever become Sir Danny Boyle.
"I'm very proud to be an equal citizen and I think that's what the (Olympic Games) Opening Ceremony was actually about," he had said.
With his denial, Boyle will join a number of other celebrities in turning down an honour from Britain's Queen - in 1969, Beatles legend John Lennon returned an Mbe (Member of the Most Excellent Order of the British Empire), while "Empire of the Sun" author JG Ballard turned down a Cbe (Commander of the Most Excellent Order of the British Empire) in 2003. Legendary director Alfred Hitchcock snubbed a Cbe in 1962, but he went on to be knighted in 1979.