N.O.R.E.’s long-running feud with bloated celebrity snitch Perez Hilton just entered Phase II.

In an interview with gay-friendly publication The Advocate last week, Perez admitted that contemplated calling rapper will.i.am the n-word (yes, that n-word) after he was socked in the eye (HA, HA!!) by the Black Eyed Peas’ manager during an altercation in Canada last month.

Now N.O.R.E. is taking Perez to task, calling him a “faggot” and a racist.

He tells DJ Vlad:
“To be perfectly honest with you, I was appalled. I was real upset he could admit that because at the end of the day, we have a black president. We’re moving on in this world, we have black governors… And the fact is, we still deal with that regular racism that’s going on. Now here’s a guy who’s a Cuban guy. For the record Cubans are considered blacks…I respect gay people, I hate f*ggots. This guy is a f*ggot. And the difference is a f*ggot is a person who hates everyone else who isn’t gay. A gay person is just happy to be gay. So when he has the audacity to admit that he wants to use the n-word, it was just like the most disrespectful thing in the world because even for him thinking like that, thinking to say that, he shouldn’t have even admitted to that. At the end of the day man, this sh*t needs to be addressed…. If he had ran across me during a time when were beefing and he would just say n. I would just punched him in his mouth…”