Parton told Daybreak on ITV1 that while there were no existing plans for a hook-up, she would not be against a duet should the opportunity arise.
"Well, I never say never," the Better Day singer said, "but I think the fact that we are both kind of outrageous, people kind of think, 'Oh, they would be fun together'. So who knows?
"We're not planning anything, there's certainly nothing in the works, but it could happen, who knows?"
Parton said earlier this year that she would like to work with GaGa after hearing the Country Road remix of 'Born This Way'.
The country legend also said that she would love to work with Madonna.
After GaGa dressed as her male alter-ego Jo Calderone at the 2011 MTV VMAs, Parton quipped that she could lend the 'Judas' star her more feminine outfits, saying: "She can borrow them, we probably fit in the same clothes."
> Dolly Parton: 'I became a singer so I'd be loved'
Watch Dolly Parton perform 'Together You and I' live on The Ellen DeGeneres Show below: