Holyfield recently confirmed that he is keen for a trilogy fight with Tyson - more than two decades after they last fought - but the plans have been criticised by the former heavyweight world champion.
Foreman told World Boxing News: "With this one, Mike should let sleeping dogs lie."
He previously explained how he avoided a clash with Tyson during his career as he found 'Iron Mike' "a nightmare in the ring" due to his destructive punching power in both hands and volatile nature.
Foreman explained: "That guy was a nightmare in the ring.
"If he missed you with his left, then missed you with his right, he'd bite you.
"I didn't want anything to do with that guy ... I didn't want a part of Mike Tyson."
Foreman also compared Tyson to a "monster" after the infamous incident in which he bit the top of Holyfield's ear off during their clash in 1997.
He said: "He was a monster.
"Those are the kind of guys you see in a nightmare.
"You want to wake up and say, 'So glad that's a dream.'"
"I didn't want any part of Mike Tyson - no way."
Holyfield has suggested that there have been discussions about an exhibition fight with the pair which he predicts will be "the biggest fight there is".
He said: "The thing is, if it happens, it will happen. I can tell you that my team is talking to Mike’s team, so I’m waiting. “It’s a decision that Mike has to make, and we both have to agree.
"I am training for this because I know that one day this agreement will come, and I am ready. I feel terrific.
"We can always help people. I try to convey the kindness that they taught me. I think if I fight Mike, it will be the biggest fight there is."