The Spanish singer was speaking live on Radio 1 when Greg James arranged for Mills to dance with him to his track 'Hero'. Iglesias said that he and Mills "go a way back".
After dancing to the track, the 'I Like It' singer told the DJ: "You know what, if I was gay, Scott would be my kind of guy."
Iglesias also compared the presenter to American Idol host Ryan Seacrest.
"Scott is like the British Ryan Seacrest," he said. "You see him everywhere. And I mean that in a good way - I don't know if you're a Ryan Seacrest fan."
Mills responded: "I'm happy with that - if you could tell him that, that would be great."
> Enrique Iglesias: 'I'm not a heartthrob'