According to the Daily Mail, Elton was infuriated as 'Smile' singer Allen knocked back champagne while on stage, growing increasingly worse for wear in the process.
The star finally made his feelings public when Lily told the audience to prepare themselves for "the most important part of the night". He hit back: "What? Are you going to have another drink?"
Allen responded: "F*** off Elton. I am 40 years younger than you and have my whole life ahead of me!"
She refused to back down when Elton vowed that he could "snort [her] under the table", replying: "F*** off. I don't know what you are talking about."
The GQ Men of the Year awards were held at the Royal Opera House in Covent Garden last night. Among those to receive honours were London Mayor Boris Johnson and Led Zeppelin.