The UFO star claims the late heavy rocker invited him to become the band's first guitarist but Schenker declined the opportunity.
"It was many years ago," he tells Metal Talk. "We toured together when he was in Hawkwind and I was with UFO. We toured the States together, and I saw Lemmy every day, but later when he started to put Motorhead together, he approached me to be his lead guitarist but I wasn't interested.
"I couldn't see that it would be something for me. I declined. I just couldn't see how it would work."
Schenker previously claimed he turned down the chance to replace Joe Perry in Aerosmith in the late 1970s and he also said no to Ozzy Osbourne when the rocker asked him to join his band following the death of guitar great Randy Rhoads.
He told The Bigfoot Diaries in 2011, "In around '81, Ozzy Osbourne called me up in the middle of the night telling me that Randy had just died and asked if I could help out.
"I was in the middle of pre-production with Cozy Powell and Graham Bonnet. It was bad timing, but on the other hand, Aerosmith, Ozzy Osbourne or any other band with history was not good for me. It would always mean that I would have to learn other guitarist's riffs. And that was not what I wanted. I was born to create and invent."