The 23-year-old British singer responded in an interview Friday with Australia's Daily Telegraph to Perry's claim this week that he is "always trying" to get her phone number.
"I don't know if it's in the accent or the way we put things but I guess that stigma of Irish charm follows you around a bit, which is not a bad thing to have really," Horan said.
"Katy has taken that and run with it and embarrassed me in front of the whole world," he added before qualifying, "I love Katy, she's great and we get on really well."
The One Direction singer joked about the situation on the Australian TV series The Project the day previous.
"Katy, please stop being mean to me," he said, according to E! News. "She's just finding any excuse now to just patronize me and go around spreading rumors about me. I just want to be your friend!"
Horan first met Perry on The X Factor in 2010 when he auditioned on the show while Perry was a guest judge. Perry made the flirting remark while discussing Horan on Wednesday's episode of the Australian radio show Fitzy & Wippa.
"Niall's amazing, I love him, and I think we feel very connected in a way because, I, like, have helped him get through The X Factor to join his group," the 32-year-old singer said. "He's become a big star and I'm like, 'Cool. I guess that means I have taste?'"
"I see him round all the time," she added. "He's always trying to like, get my number, to like, maybe flirt with me but I'm like, 'I could babysit you. I'm like your mom!'"
One Direction started an indefinite hiatus in December 2015, and have yet to announce a reunion date. Horan released his second solo single, "Slow Hands," in May.