The legendary producer-and-DJ is excited to hear the 56-year-old singer's next LP - which leaked earlier this month but is due for release next year - and is very pleased she is has been recording dance tracks with Avicii because he believes that is the best genre for her.
He told BANG Showbiz: 'Madonna is still relevant, people still love her and she's still good. She's getting older of course but she still has a great voice. I think if she makes the right dance album I think she could become quite big again. I know she's working with very young people and I think she could do well with the right record.'
Madonna is an admirer of Moroder and her track 'Future Lovers' - which featured on her 2005 album 'Confessions on a Dance Floor' - has a bass line inspired by Donna Summer's 'I Feel Love', which Moroder produced and she opened her 2006 'Confessions Tour' with a medley of 'Future Lovers' and 'I Feel Love'.
Moroder is releasing his own new album in 2015, his first studio LP for more than 30 years, and the record features collaborations with Britney Spears, Sia, Charli XCX, Kylie Minogue, Mikky Ekko and Foxes, among others.
As well as his album, the 74-year-old musician still DJs all over the world and admits he was pleased when the EDM movement took off because he started to earn more money.
Moroder - who was a pioneer of dance music in the 70s and 80s - quipped: 'I love EDM because there's a lot of money around and I'm a DJ too so I'm making nice money! It is the pop music of the world now, the music that is considered dance.'