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The 'West End Girls' duo are releasing new album Disco 4, which will feature songs by The Killers, Madonna and David Bowie and wanted to include a reworking of the popular Blur track.
However, Albarn has apparently placed a ban on the song's release, claiming that the remixed version was too good.
A source told The Sun: "Damon complained that they had made the song sound like their own.
They added: "He was also annoyed when he heard Neil Tennant supported Oasis in their 90s chart battle with Blur. Neil said Damon was pretentious."
