The 90-year-old star won't be returning for the third Princess Diaries film because she is "past" appearing on camera now, though she insisted she isn't giving up work completely because she is enjoying doing voice work and writing books.
She told The Hollywood Reporter: "... the absolute truth is that I think I'm really past all that now.
"I'm not completely retired, but it's a different kind of work that I do these days — writing books, and I do a lot of recording of podcasts and voiceovers. But truly, I don't think I should be a part of it."
The Sound of Music actress noted it is "still lovely to be working on things," but she prefers not doing work "necessarily on camera".
She aaid: "It isn't that I'm not enthusiastic for it. It's just that I really don't feel I should be part of it now."
The original Princess Diaries film recently celebrated its 25th anniversary and Dame Julie has fond memories of working on the movie with co-star Anne Hathaway and late director Garry Marshall.
She said: "I've not really given it thought that way. I mean, I'm thrilled, and it was well-made by dear Garry Marshall, who was the sweetest director you could imagine and funny and talented and considerate. So it was a very enjoyable film to make."
It was announced in July that Dame Julie will be the subject of a feature-length Disney+ documentary, which will track her journey from British vaudeville performer to international screen icon through previously unseen archive material and new interviews.
Disney+ confirmed the film will debut in 2027, with an official title and release date to be announced later.
It said about the project: "Marked by resilience, heartbreak, reinvention and enduring grace, her story goes far beyond the spotlight."
The streamer said the film will feature "rare, never-before-seen archival footage and candid new interviews", offering audiences unprecedented access to Dame Julie's life and career.
The star won the Best Actress Oscar for Mary Poppins in 1965 before cementing her place in film history with performances in The Sound of Music, Victor/Victoria, and The Princess Diaries films.
Her career also spans acclaimed stage performances, bestselling books and television work, while her distinctive voice became recognised around the world long before she suffered the vocal injury that dramatically altered her singing career.