The singer-songwriter told Metro that he would relish working with the Rick Rubin-produced rap-rock crossover group but is not sure if they could plan the project.
Diamond said: "I've worked with Rick on my past three albums and I've got a new record on the way with him.
"We've started talking about it and I'm looking forward to getting into the studio and laying down some stuff."
He added: "I'd love to do something with the Beastie Boys but, because of all the travelling, you don't necessarily see these people unless there is something that brings you together.
"Most of the time these things are down to luck rather than judgement, so you never know."
Earlier this year, Diamond topped the UK album charts for the first time with his 29th studio LP Home Before Dark.