The British producer - who is most famous for his work on Emeli Sandé's debut album Our Version Of Events - met the music executive while working with Leona Lewis.
"Simon told me I was a genius," the musician - real name Shahid Khan - told Daily Star. "He asked if I'd work with some of his other artists.
"He asked my opinion on The X Factor. I said the public want raw talent and just aren't interested in gimmicks anymore. He said he didn't disagree with me on that."
Naughty Boy will release his debut single as a lead artist called 'Wonder' in the UK on September 30.
The song is the first to be lifted from his debut album Hotel Cabana, which has been 18 months in the making and will be available in early 2013.
Listen to Naughty Boy's 'Wonder', which features Emeli Sandé, below: