Damon - who has previously staged a bout between the ‘Mean Girls’ star’s father Michael Lohan and aspiring actor Derek MacIntosh – said: "We're calling it the battle of the bad girls of Hollywood.
“They would use big pillow-sized boxing gloves. This would be nothing more than a fun match-up, and Paris and Lindsay have both dabbled with boxing training in the past.
"Michael could even help train Lindsay as he is undefeated in Celebrity Boxing!"
Paris, 29, and 24-year-old Lindsay – who left rehab earlier this month following court-ordered treatment for substance abuse problems – are said to have finally settled their long-running feud, which stems back to 2006 when the heiress mocked her former pal’s red hair and Damon believes the light-hearted match would be the perfect way to strengthen their friendship further for the sake of a good cause.
He told RadarOnline.com: "This is a perfect way for the two ladies to give back.”
Damon recently made a pitch for Mark Wahlberg and Will Smith – who played boxers in ‘The Fighter’ and ‘Ali’ respectively – to step into the ring, but ‘Men In Black’ actor Will declined the offer.