Maura Gallagher told the Herald that she thinks the former Disney star would be a worthy match for her 18-year-old son.
"She'd be worthy, he has my blessing ... I'd never turn any girl of Niall's away, that's the kind of mother I am."
Demi (19) revealed that she has a soft spot for the One Direction member and called the Mullingar native "adorable".
Now fans are hoping that a romance will blossom between Demi and the What Makes You Beautiful heartthrob, after cheeky Niall divulged: "I'd like to see her all right. And she's of a similar age, she seems to be a nice girl."
Proud parent Maura admitted that while Ms Lovato seems like a lovely girl, Niall "doesn't have time" for a girlfriend at the moment.
"He only has a day off every now and then, it's hard to keep up with him -- everyday there's something else being said.
"I don't know much about [Demi] to be honest, I'm sure there are lots of girls who like him, but he'll be up against this a lot because of the circles he's mixing in. He'll meet many lovely people along the way. Sure, last weekend he met the Obamas, the child's mind must be blown with what he's getting to see and do.
"People are interested in this kind of thing [relationships] about him now -- if he's associated with every girl he's in a photo with, so be it.
"But I wouldn't stand in his way, he has to live his life."
The platinum-selling chart-toppers are set to appear on NBC's Saturday Night Live this weekend before jetting off to Australia on Sunday morning.
Due to their hectic schedules, the Up All Night singers were forced to decline a personal invitation from First Lady Michelle Obama for the White House annual Easter celebrations.
"This is where the X Factor journey took them and long may it last," added Maura.
"All five of them are such normal, ordinary lads and this is what they're getting to do, it's amazing."
Now the pressure is on for the group to follow up their success with another best-selling album.