The former Oasis guitarist said a chance meeting with the Damon - whose band Blur went head to head with Noel's in the charts and a bitter war of words in 1994 - led to them having a beer and settling their differences.
He told Shortlist Magazine: "Funnily enough, when I was out last night, I bumped into him. I literally haven't seen the guy for 15 f***ing years and I bump into him in some club. We both went, 'Hey! F***ing hell!' and then he said, 'Come on, let's go for a beer.'
"So we're sitting having a beer, just going, 'What the f**k was that about 15 years ago? That was mental.'
"Then he said, 'It was a great time though,' and I was like, 'Yeah, it was a f***ing good laugh.' It was cool man."
While Noel, 44, has put his feud with Damon behind him, his bitter fall out with his brother and former Oasis bandmate, Liam - which led to the band's split in August 2009 - continues, and it annoys Noel that he constantly gets mistaken for his sibling on the London Underground.
He added: "I always get this, 'Excuse me, mate, aren't you Liam Gallagher?' F**k's sake. Sometimes, even when they ask me, I say, no and they're like, 'You don't half look like him.'
"For all you budding famous people out there, the key is to keep a straight face: 'Are you Noel Gallagher, mate?' 'Nope.' 'Are you sure?' 'Yep.'"
Noel's debut album with his High Flying Birds project was released on Monday (17.10.11).