The band hasn't been active in five years after some festival shows supporting their third album 'Sequel To The Prequel' and while there have been offers to return it would logistically be tough.
Speaking to NME, Pete explained: ''Babyshambles were offered some money to have a comeback. Good band, they were - amazing tunes. [But] no, I don't think so.
''There's money involved, f***ing hell. It doesn't matter how much you love the songs. You can be like, 'Oh are you going to get Babyshambles back together, Pete?' But then who's going to manage Babyshambles? There are all these managerial f***eries with Babyshambles.''
He also admitted there would be issues with figuring out who should be part of a reunited lineup, as he pointed to the difficult task of fitting original guitarist Pat Walden into the mix.
The group was formed in 2003 with Pete and Pat joined by Drew McConnell on bass and Gemma Clarke on drums, and when the group reunited in 2014, Adam Ficek was behind the kit with Mick on guitar duties.
He added: ''Who are [Babyshambles] anyway? Who's going to play guitar? It's gotta be [Mick Whitnall], but does Pat want to? Last time we tried to get Pat back, but should get Mick and Pat?
''If you're gonna do Babyshambles you've got to play 'Pipedown', but then you've got to play 'F**k Forever', and you can't not play 'I Wish.' ''
Meanwhile, Pete was hospitalised earlier this week after getting spiked by a hedgehog he was trying to save from his dogs.
The Libertines rocker had been out walking his two Siberian huskies when one of the dog picked up the spiny mammal, and his attempts to free the terrified animal meant one of the spines ended up lodged in his finger, leading him to hospital to get it removed and treated in case of infection.