"My family want me to go back to Low Fell, Gateshead, where my dad lived but I just don't want to live there any more, not after what happened."
Miss Cutler said she would be more than happy to welcome her new friend to her area and looked forward to inviting him over for barbecues.
She said: "It would be lovely if Alan moved near me. There are some great houses with nice gardens that you can use your gardening skills in. He can also come over to mine for BBQ's and stuff in the summer."
The pair have become firm friends since meeting after the fund Miss Cutler set up exceeded all expectations and raised hundreds of thousands of pounds to help him get back on his feet following the attack outside his home.
Mr Barnes, who was born with sight and growth problems after his mother contracted German measles during pregnancy, stands at just over four feet tall, weighs a mere six stone, and was left with a broken collar bone following the alleged assault outside his home.
He said he was still not sure what he would do with the rest of the money, once he had bought a house, which is expected to cost him around £100,000.
He said: "I haven't made any concrete decisions on the money yet but I will certainly be very responsible with it.
"I still want to do some youth work and Katie also says there is a church near to where she lives so you never know what could happen with that. I still intend to do a lot of charity work.
"I am going to see a solicitor to help me decide what is best to do with the money. I do have a bank account at the minute of my own.
"It's a current account and I have a debit card for it but no pin number because I'm visually impaired. I can't use cash machines so well.
"If I ever need any money I just go straight to the bank and get the money over the counter. I'm going to talk through all the options and decide what is best to do with the money.
"I have always been good with money, I don't waste it. I don't go on holidays or anything like that. Any spending that I do is all thought out and I'll be the same with this donation. All the money will be very well used."
He went on: "Before the attack I got part of a state pension but I paid my own council tax and rent and everything. I could manage on the money I had, other people might have found it difficult.
"I didn't have any luxuries and I couldn't ever buy any presents or anything. I never really carry cash and only take money out on the day to pay my rent I wouldn't even keep the next week's rent in the house. I might have kept a tenner or twenty pounds in change in the house but that's all. The most money I've ever seen is probably £1000 I got some money when my mum died."