The popstar spoke about this while promoting her new album, Tension II, which arrived last week.
She revealed that she had offered the chance to record the track, Toxic' which was eventually taken on by Spears in 2003.
Speaking on the Audacy Check-In podcast, Kylie Minogue said: "Yeah, there's a little song called Toxic that was headed my way, and I was like, 'Toxic? I don't know if I want a song called Toxic'...".
Minogue also admitted that the right singer recorded the song in the end: "As its turned out, it was meant to be a Britney Spears song. I can't imagine it being anything else".
Britney Spears' 'Toxic' went on to reach number one in the Billboard European Hot 100 Singles, and number 2 in the European Radio Top 50.
Elsewhere on the podcast, Kylie Minogue spoke about the changes she has noticed in the music industry, since she made her debut in 1987.
"It wasn't that many years ago that I felt I was in quite awkward positions where people would question me to my face in an interview, 'When are you too old to be a woman in this business?'", Minogue said. "Firstly - rude, but secondly - I don't know. I guess I've always had women in the industry that I've looked up to, I didn't really think about their age at the time".
When asked about women that she has admired in the music industry, Kylie Minogue mentioned Olivia Newton-John, Madonna, Whitney Houston, Donna Summer, and Cyndie Lauper.
