The Blur frontman decided against working with the late music legend - who passed away from an accidental overdose in April 2016, aged 57 - simply because he wasn't willing to comply with the 'Purple Rain' hitmaker's no-smoking rule, though in hindsight, Albarn admits he would've been ''f***ing excited'' if it did happen.
Asked about the snub, he told Radio X: ''Yeah I didn't go. I'd done a gig in Minneapolis and I was invited to go and play with Prince so to speak.
''And you know, I was having a drink and a fag -- I don't actually smoke anymore as I knocked that one on the head -- and I was just like ... If you can't be who you are...''
The 'Country House' hitmaker says he would never give fellow musicians rules as to what they are and not allowed to do in the recording space.
He added: ''If I've invited someone, they're my guest and there aren't any conditions like that.
''And anyway, It's like I could go and have a cigarette outside if I needed it.
''You know, I'd be f***ing excited and how could I not f***ing go mad if I'm with Prince?
''So I'd rather not do it and not get p***ed off with the whole thing. It's one of those could've beens. I've got a few of those.''
Meanwhile, Damon has confirmed a new album from The Good, The Bad & The Queen will be out soon.
The 50-year-old musician formed the rock supergroup with The Clash's Paul Simonon, The Verve's Simon Tong, and Fela Kuti drummer Tony Allen in 2006 and they have so far released one, self-titled, album.
Damon told Zane Lowe on Beats 1 that a new record from the band was ''sort of finished.''
He added: ''We're playing it back at the moment downstairs. So yeah, I think it is [finished].''
David Bowie's producer Tony Visconti joined The Good, The Bad & The Queen last year, and previously promised a new record from the supergroup in 2018.
The 'Song 2' hitmaker is busy juggling multiple projects at the moment, having just confirmed the release of a new album with virtual band Gorillaz, 'The Now Now'.
They'll hit the UK and Ireland this November.
Slaves hold open auditions for a new drummer in the star-studded and ultimately heart-warming video for their new single 'Chokehold'.
Sometimes it takes more than 12 months to put together a fantastic season of one of the world's leading TV shows.
Orbital brought their spectacular show to the East Kent coast at the weekend to the delight of a variety of ravers.