The 'If I had a Gun' hitmaker - whose former band Oasis had a huge rivalry with Damon's group Blur during the 1990s - thinks they could produce a "mental" collaboration now they have resolved their differences.
Asked if he would prefer to record with Damon or Radiohead's Thom Yorke, Noel said: "Oh, Damon. I find Damon a lot more interesting than Thom Yorke, Not that I don't like Thom, or dislike Radiohead. I think they're great live - but I couldn't listen to one of their records.
"If I was gonna make a record, it would be with Damon. For a start, he's as mad as a box of frogs. Number two, he'd get loads of hip-hop dudes working on it, which itself would be f***ing mental. And number three? It would be a better record."
Noel and Damon met recently by chance and the 'Wonderwall' hitmaker admits he was pleased to finally get the chance to call a formal truce to their old feud.
He told NME magazine: "It was quite a moment. We'd never been in the same room for maybe 10 or 15 years. And I always said to myself if I ever was I'd go and say, 'F***ing hell, alright man?' and shake his hand.
"We were at some nightclub a couple of months ago, and I was going to the bar and bumped straight into him.
"We had a beer and were like, 'What was that all about?' It was a great relief. I'm glad I've seen him and shook his hand and apologised for all that s**t."
Noel also joked about the possibility of he and Damon joining forces to spearhead a 90s nostalgia tour in the distant future.
He said: "Imagine if we end up doing some Britpop nostalgia tour like what Slade and all them lot do for glam. It would be f***ing mega.