The Blur frontman thinks it would be ''nice'' for his former foe to work with his Africa Express collective when they reconvene later this year.
Asked if he would work with Noel, Damon told Shortlist magazine: ''Well, why not? He should come on the Africa Express train in September. That'd be a nice chance to collaborate.''
Despite being bitter rivals during the mid-90s - culminating when Blur beat Noel's group Oasis to the UK number one slot with 'Country House' in 1995 - Damon insists he always ''admired'' the guitarist because of the way he and his bandmates dealt with fame.
He said: ''I never held anything against him, even right in the middle of it. I just kind of admired them in a way; that they were better at handling it all than me. They didn't seem to get too affected by the bulls**t.''
Noel recently admitted he would like to work on a track with Damon after they resolved their differences last year.
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.''