The multitalented comedian says on Twitter that he "tried to make it work schedule-wise, but I need sleep".
MacFarlane said in his tweet on Monday that Academy Awards producers Craig Zadan and Neil Meron are among the best in the business.
Zadan and Meron produced this year's Oscar show, which earned higher ratings among coveted younger viewers, and will be returning for the 2014 telecast.
MacFarlane earned mixed reviews for his first outing as Oscar host in February, with some finding his material sexist and anti-Semitic.
The creator of Family Guy suggested Oscar producers tap eccentric actor Joaquin Phoenix to host the show.
