Buddhism doesn't accept nor deny the existence of gods, but most Buddhists (at least in places like China and Japan, which I'm most familiar with) are not above adopting the mythological traditional gods of their culture as part of their Buddhist belief system, and don't find it contradictory. On the other hand, while the concept of divinity is not specifically rejected, I can see how the worship of a single all-powerful God as we have in Judeo-Christianity and Islam might philosophically get in the way of Buddhism.
I think the Buddha was originally some sort of self-help guru trying to teach people how to live a good and moral life, and over time he got built up into this almost God-like character of infinite wisdom. Something that he may have not been keen on.