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The 30-year-old singer told Q Magazine, "I wish the whole thing hadn't happened. I like Cheryl.
"She's good on The X Factor, she's pretty and she's got balls. I like women who do well."
Lily Allen has said she regrets her feud with Cheryl Cole
The two women fell out back in 2006, when Lily named-dropped Cheryl on the B-side to her single, Smile.
Cheryl was less than impressed and hit back at Lily during an interview with chef Gordon Ramsay, prompting Lily to publish an open letter to the Girls Aloud star.
"Cheryl, if you're reading this, I may not be as pretty as you, but at least I write and sing my own songs without the aid of Auto-tune.
"I must say, taking your clothes off, doing sexy dancing and marrying a rich footballer must be very gratifying, your mother must be so proud."
Lily Allen on Cheryl Cole: 'I wish the whole thing hadn't happened. I like Cheryl'
Recently, Lily has admitted to feeling let down when she is criticised by other women.
"It's sad. Exhausting," the mum-of-two said in an interview for Glamour magazine's June issue. "Your own sex, in the name of feminism, hitting you back down."
"I do feel betrayed by my sex… People have got their own agendas these days. It's obvious when it's about ego and them wanting to sound clever."
Lily also explained why she decided to return to the music industry after several years away.
"I wasn't good at staying at home all day, it didn't suit me," said the star, mum to Ethel, two, and Marnie, one. "I'm creative, it's just who I am.
"I missed the positive feedback about my music from my fans. I missed the rush of performing. I missed the free clothes and handbags and the good tables in posh restaurants. I did!"