The singer told E! Online that she was impressed with the country remix of GaGa's 'Born This Way', and feels a collaboration could be a good idea.
She joked: "I think it's great. It's just wonderful. I love her. Maybe we should do something together - GooGoo and Gaga! You know those GooGoo candy bars in Nashville? I could be Lady GooGoo."
Parton also spoke about working with Queen Latifah for the film Joyful Noise, set for release in 2012.
The film revolves around a national choir competition, starring Parton and Latifah in the lead roles. The 65-year-old said: "I wrote four of the numbers.
"There are a couple we got to do together. There's a lot of great music in the movie."
Parton announced details of her latest single last month.
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Listen to 'Born This Way' (Country Road Version) below: