The comedian was on stage at the Vulture Festival talking about his upcoming season of Comedians In Cars Getting Coffee when he was asked about it.
"I had an episode all ready to go that we were going to do entirely, secretly, in claymation," Seinfeld said. "I had the studio ready, and the figures ready, and it was all good to go."
But then some (terrible, horrible) person told Jerry that Tim Allen had done an animated episode of his own show, scaring Jerry off of his idea.
"I canceled it. I realize now that was a huge mistake. We had Kramer taking a pencil and sticking it in his eye ... And so, that was a huge mistake. So yeah, that's what I regret."\
Oh, what could have been. At least we can binge on all the live action Seinfeld episodes on Hulu soon.