The 42-year-old has for the first time spoken about the reports suggesting he is gay in an interview with Playboy, reported Daily Mail.
"I never denied those rumors. Because I was offended and didn't want to offend my friends who were gay, as if being gay were some kind of disease. It put me in a weird position in that sense," he said.
Having a lot of gay friends, Damon was happy for them with the growing tolerance toward homosexual people.
"The fact that Anderson Cooper and Ellen DeGeneres can come out so beautifully and powerfully, and it's a big deal that it turns out nobody gives a damn," he added.
Damon has now accepted an offer to be gay musician Liberace's lover Scott Thorson in HBO's TV movie "Behind the Candelabra".
He stars opposite Michael Douglas who tackles the role as the legendary piano player in the upcoming biopic.
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"These two men were deeply in love and in a real relationship - a marriage - long before there was gay marriage. That's not an insignificant thing.
"Their conversations when they're dressing or undressing or having a spat or getting ready for bed? That's every marriage."