The 70-year-old rocker has revealed how after firing his manager Dee Anthony - when he was still struggling financially and creatively - he received a call from Pete Townshend saying he was leaving the band, and asking if he would take his place.
Speaking to The Guardian newspaper, he laughed: "It was the most bizarre thing I ever heard. Three men couldn't fill his shoes!"
He initially turned the offer down, before - influenced by his financial state - calling back a few days later, but Townshend acted like the initial conversation hadn't happened.
Peter has reflected on his business relationship with Anthony - who died in 2009 - and insisted his manager told people not to discuss money with him.
He added: "I was kept away from those things. I was kept high. If I needed weed, he made sure I had weed. If I needed cocaine, he made sure I had cocaine.
"He didn’t want me thinking about what was going on. It was criminal. I could have put him in jail.”
Peter - who has opened up about his rise and fall in his memoir 'Do You Feel Like I Do?' - also addressed his highly publicised health battle after being diagnosed with a degenerative muscle disease called inclusion-body myositis.
Despite the ailment, he is staying positive despite the "life-changing" condition, as he can still play guitar at home, and just worked on a new track with members of the Doobie Brothers.
He said: "It’s life-changing, not life-ending. Is it sad? Yeah. But I have to put it in perspective.
"I’m here. And I’m very pleased with how everything in my life turned out.”
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