The 23rd instalment of the spy franchise, titled Skyfall, will be released next October and Arnold - who has written tracks for the past five Bond films - wants to see Queen have a go at writing the main theme.
He told the Daily Star: "I'm a massive Queen fan and I would love them to do a theme tune. Imagine how ridiculously bombastic a Queen anthem could be.
"It's a shame because they would have been perfect for Roger Moore's Bond during the '80s when he was punching clowns."
However, with guitarist Brain May recently hinting that the band and Lady GaGa plan to collaborate in the future, bookmakers are now offering odds on the pair recording the new 007 theme tune.
Despite Rihanna currently being the favourite to record the track at 6/1, odds on a Queen and GaGa duet are offered at 25/1.
He added: "I've heard the Adele rumours but nobody has been asked yet. Traditionally producers wait for the film to be made, or if I'm asked I'll have somebody in mind."
The songwriter also said that he has been speaking to Simon Cowell about a Bond-themed week for next year's X Factor competition.
He explained: "I've spoken to Simon about doing an X Factor Bond special before. We would love to try it but it's difficult finding the right Bond songs for people to sing."
The 23rd James Bond movie, which stars Daniel Craig as the iconic spy, will be released on October 26, 2012.
> Noel Gallagher shoots down James Bond 'Skyfall' theme rumours
Watch the official press conference announcement of Skyfall below:
See pictures of the new Bond cast below: