Damon had spent time in the studio with the singer while recording her amazingly successful 25 album, but none of the collaborations made the final album.
Talking to The Sun, it seems the Blur frontman is discounting ever working with the 'Hello hitmaker.
Talking about the success of Gorillaz's Demon Days album, Albarn said: "It wasn't quite Adele but I will never be Adele . . . or ever work with her!"
When the 28-year-old singer's album came out, Damon labelled it "very middle of the road," prompting Adele to say she wished she'd never worked with him.
Revealing their studio sessions, he explained: "Adele asked me to work with her and I took the time out for her. And I'm not a producer, so... I don't know what is happening really. Will she use any of the stuff? I don't think so. Let's wait and see. The thing is, she's very insecure. And she doesn't need to be, she's still so young."
Adele responded by saying: "It ended up being one of those 'don't meet your idol' moments. And the saddest thing was that I was such a big Blur fan growing up. But it was sad, and I regret hanging out with him."
Adele - who has a four-year-old son Angelo with husband Simon Konecki - explained: "None of it suited my record. He said I was insecure, when I'm the least insecure person I know. "I was asking his opinion about my fears, about coming back with a child involved - because he has a child - and then he calls me insecure!"