Most Helpful Guy
Whoever cares the least wins
See when a guy and a girl both want sex or both want a relationship, then they are on the same page. However when they want different things, the person who cares the least wins.
You want a relationship, he wants sex. Your level of overall desire for him is likely higher than his level of desire for you. This is why you're considering agreeing to an arangment you know won't make you happy.
I his desire for you was the same or greater, he would agree to a relationship, but clearly that isn't happening.
It's probably in your best interest to move on.2
Most Helpful Girl
If you're not comfortable with the situation it's only going to get worse. If he doesn't want a commitment now he probably won't ever want one with you. It was great that he was honest about the situation, but now it's up to you to decide if you want to continue.
You have a few options. Since he was so open to communicating the situation before, you could be honest, explain you have feelings, and ask him if he sees it going any further in the future. If he can't give you a direct answer I suggest you leave. "Maybe" means "no but I want to sleep with you until you give me an ultimatum.
You could let go and move on but be wary. If he knows you have a new guy he may play the "I miss you I have feelings" for you card to get you to go back. Once you do he likely won't commit again and you'll be back where you started.
These kinds of relationships often fail because one person tends to want more than the other. Sometimes they work out but that's only when both people are okay with just hooking up, or when one confesses feelings and a desire for commitment the other wants the same thing. Right then and there. Not later.1