Del Piero opted to join Australian A-League side Sydney FC, after Liverpool reportedly tabled a late offer to bring the Juventus forward to Anfield.
Liverpool boss Brendan Rodgers sought to strengthen his attacking options over the summer, and brought in Fabio Borini from Serie 'A' side Roma.
But, after sending Andy Carroll on loan to Premier League side West Ham, Rodgers failed to secure a replacement, and is now left with only Borini and Luis Suarez as senior striker options.
And Del Piero, who was available for free after his contract at Juventus ran out, has revealed he rejected the chace to join Liverpool.
"Why I said no to Liverpool? Negotiations with Sydney were already advanced and then I thought about what happened at Heysel," Del Piero told Italian news outlet Gazetta dello Sport.
"Juve and Liverpool were able to rebuild the relationship, but for many people that tragedy is an indelible memory. I thank all the clubs which wanted me, but I'm convinced of my choice."
Del Piero spent 19 years with Juventus, becoming their all-time top-scorer, and record appearance maker. The 37-year-old has 91 Italy caps, and was part of the 2006 World Cup winning national team.
Liverpool have been linked with a number of strikers since the transfer window shut, and Brendan Rodgers is reportedly considering his options before the January window reopens.
The Anfield club have been credited with an interest in Arsenal winger Theo Walcott, Crystal Palace forward Wilfried Zaha and Ajax playmaker Cristian Eriksen.