
Coleman brought his Blues career to an end after 17 years at the end of last season and was immediately contacted by the Championship club following his Hill Dickinson Stadium exit.
However, the former Republic of Ireland captain, who had been offered a coaching role to remain at Everton, felt that the timing wasn't right for a move to Bramall Lane.
And Coleman has admitted if it wasn't for the promise of maintaining his place with the national team, he would have hung up his boots.
Ireland co-hosts the next European Championships alongside England, Scotland and Wales, and head coach Heimir Hallgrímsson was said to have held talks with the veteran full-back over staying around the squad for the 2028 tournament.
Coleman told the Stick to Football podcast: "(What are you doing?) Not a lot. I’ve been in Ireland for about six weeks, which was nice. I‘ve been keeping fit and not stressing.
"I was probably was 100 percent done at the end of the season until I spoke to the Ireland manager. I’d done quite well in games and got close to the World Cup, (and) he spoke about being involved for the Euros - that’s a couple of years away.
"But it planted a seed, I spoke with the club, met the manager and felt a bit soon after leaving Everton. I didn’t want to keep them hanging on or mess them around and get their players in - that was Sheffield United.
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"The manager was great, a little bit old school, the club was a good setup, but I didn’t want to keep them hanging on and decided it just wasn’t right.
"I’m not stressing, I’m quite laid back, I’ve had a good run and it was more so the Ireland stuff that has put a bit of doubt in my mind.
“Just because I’d been somewhere so long and it came quick, it was too quick. I’d finished with Ireland and they’d got on the phone a couple of days later. It just didn’t feel right.
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“I’m training myself, (but) it’s not the same, trying to stay as fit as I can. Now the window is closed it might open up a little bit but I’ll be making a decision, very, very soon. If it wasn’t for the Ireland stuff my decision would be made.”
Coleman has been training on his own, as well as with local Gaelic football side Killybegs in Ireland. His time at the GAA club sparked rumours of a return to the sport but they were quickly dismissed.
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