The ex-Oasis songwriter and Blur frontman fell out at the height of Britpop, with their singles 'Roll With It' and 'Country House' famously competing in the charts in August 1995.
Gallagher said in a 1996 interview that he hoped Albarn and Blur bassist Alex James "catch AIDS and die", but quickly retracted the comment.
"Funnily enough, when I was out last night, I bumped into him," Gallagher told ShortList of Albarn. "I literally haven't seen the guy for 15 f**king years and I bump into him in some club.
"We both went, 'Hey! F**king hell!' and then he said, 'Come on, let's go for a beer'. So, we're sitting there, having a beer, just going, 'What the f**k was all that about 15 years ago? That was mental'.
"Then he said, 'It was a great time, though', and I was like, 'Yeah, it was a f**king good laugh'. It was cool, man."
Gallagher said previously in the interview: "I'm not one for hearing a Trojan Records 7" and suddenly thinking, 'Right, it's reggae time'.
"I make music that comes from my soul. I'm not like Damon Albarn, who can seemingly turn his hand to any f**king thing he wants to. I have certain parameters."
Gallagher this week released his first post-Oasis album Noel Gallagher's High Flying Birds
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Watch Noel Gallagher talking about the chart battle with Blur during the 2003 Live Forever documentary below (FEATURES STRONG LANGUAGE):