The Chic legend has struck up a friendship with the Irish axeman and thinks they could write some great sounding tracks together.
He told The Sun newspaper: ''He is a great human, really special. I said to him, 'Dude, think about what this s**t would sound like if you and me were playing guitar together.'
''U2 are working on an album right now so it wouldn't be for a while. I fantasise about how it would be, play out the scenario in my head.
''I don't even know what that would sound like but to me it's got to be cool. Why would you not do that? People like that, we feed off each other.''
'Good Times' hitmaker Nile, 60, also told how another of his guitar playing showbiz pals, The Rolling Stones' Keith Richards, was his inspiration to stop taking cocaine and clean up his act in the early 90s.
He said: ''I knew Keith pretty well through [singer Sir] Mick [Jagger]. He'd sobered himself up when I met him by taking an ice-cold bath fully clothed so we could discuss the possibility of me producing the Stones. I thought, 'Are you kidding me? Keith Richards got sober?' If he could do it, I could do it.''
Ono is to receive a credit for co-writing 'Imagine', 46 years after it was released.
Famous rocker Steve Earle has calls Noel Gallagher ''the most overrated songwriter ever'' and praised Damon Albarn.