Should we be friends with benefits?

I have a pretty good friend I've known for years, we dated a bit last year and now we have both moved to the same city to study. Ever since he found out we were both going to the same city he's been pestering me to hang out...a few days ago I gave in and we did, he told me he had always liked me but didn't want a relationship and asked if I was okay with that. To be honest I wouldn't want him as a boyfriend because he's not the type of person I'd want to end up with so is it wrong to just be friends with benefits for the meantime? Thanks!