The multi-award winning actor was given the honour in 1991 for services to the performing arts. The 75-year-old star has revealed he had considered turning down the title, reported Telegraph online.
"Frankly, I don't think we should have titles, really. It's a very strange system isn't it? Actors are more likely to get them than fire chiefs or people who have spent their lives doing charity work, which is a bit unfair, isn't it?" McKellen said.
"I was in two minds about it, I liked being Mr McKellen. And if we all said no, it would stop."
McKellen said that all three had encouraged him to go for it and conceded it was "alluring".