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Published 10:14 3 Jul 2015 BST
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The pair used to present the Xtra Factor together.
Speaking to The Sun, he revealed: "Olly and Caroline have great chemistry. I think he fancies her, or maybe the other way round actually."
Simon later went on to say he was "kidding", which is a good thing as Olly is currently loved-up with girlfriend Francesca Thomas.
The producer loves the pair's "chemistry".
He also explained that he thinks the pair are the perfect choice as they "love the show and they have amazing energy".
Speaking about Olly specifically, Simon added: "The irony is that when he announced it, he was playing in front of 12,000 people.
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