The singer is wary about the band recording a new record - their first since 2003's 'Think Tank' - because he doesn't know how it will fit with the lives the band members lead now that they are in their 40s.
He said: ''There's a part of me that would love to be able to bring it into our 40s and our sort of family world. But does it belong in that world? That's the other side of it. Do any of us need that? And I have got so many more interesting things to do.''
While the rest of the band - Alex James, Graham Coxon and Dave Rowntree - appear keen to make a new Blur album, Damon, 44, is still trying to make up his mind, although he says he wants the group to do more than just play live.
He added to Q magazine: ''I'm undecided about how I feel. The problem is, I'm constantly asked about it and I don't really know.
''I don't want to just do gigs. I want to do something that has some genuine resonance, and helps explain to me why I'm there. Something that explains to everyone in the field [watching the band] while they're there. I do believe in the spirit, it's what drives me.''
Damon's other projects include supergroup Rocket Juice and the Moon, Gorillaz, The Good, The Bad and the Queen and his opera Dr Dee.
Blur will headline a special concert in London's Hyde Park to celebrate the closing of the Olympics on August 12.