The Blur and Gorillaz musician explained that he has been producing a new project that would be "under his own name".
"This week we're mucking around with these Russian synthesizers in a very loose mind of doing some kind of record under my name," he explained on BBC Radio 4's Front Row.
"I suppose you could call it a solo record, but I don't like that word. It sounds very lonely - solo. I don't really want to be solo in my life. But yeah, I'm making another record."
Albarn also described Blur's upcoming Hyde Park gig for the Olympics as "too corporate".
He said: "The corporate side I find a bit depressing. There's too much of it [sponsorship]. A lot of people see it differently. We're putting on another celebration for the official closure of the Olympic Games.
"But we're putting it on for London and people who hopefully want to sing their hearts out in a park. I'm signed up to the idea of regeneration in London and putting on a good account of ourselves; definitely."
Damon Albarn has played down his comments that Blur and Gorillaz were on the way out.
The musician recently invited old rival Noel Gallagher to work with him on a future collaboration.