The late star - whose death is still being treated as "unexplained" after being found dead in her home in Wrotham, Kent, England, on April 7 - was being considered for a judging position on the modelling reality show in the weeks before her death.
Brian Walsh, Foxtel's director of television, confirmed to the Sydney Morning Herald newspaper: "Peaches was one of a number of names suggested but we took the decision that it was too soon to make any calls.
"The idea was not progressed beyond an initial stage."
Tragically, the 25-year-old aspiring presenter was expected to replace former judge Charlotte Dawson, who was also found dead in her Sydney home this February.
She would have sat alongside model Jennifer Hawkins, designer Alex Perry and male model Didier Cohen on the panel.
In an interview published after her death, Peaches had admitted she was gearing up for a new TV project abroad and was planning to bring her children Phaedra, 11-months, and Astala, 23 months, along for the duration of filming.
She said: "I can't say what it is yet, but I'll be there for three months. My children will come with me because, obviously, I wouldn't leave them for that long."
It was recently reported that the star's heartbroken husband Thomas Cohen hasn't returned to their home since her death last week.
The couple were married in September 2012 at church of St Mary Magdalene in Davington, Kent, where her late mother Paula Yates was buried in 2000. Peaches' funeral is also expected to take place there soon.