UK Considered Killing Idi Amin
The former Ugandan dictator died of multiple organ failure in hospital in Jeddah, Saudi Arabia on Saturday.
Lord Owen, speaking on Radio 4's PM program, said his proposal was seen as an outrageous suggestion.
"I'm not ashamed of considering it, because his regime goes down in the scale of Pol Pot as one of the worst of all African regimes," Lord Owen said.
Amin, who was variously described as 78 or 80 years old, had been in a coma at King Faisal Specialist Hospital in the Red Sea port city of Jeddah since 18 July.
He was forced from power in Uganda in 1979 by Tanzanian troops and Ugandan exiles, after one of the bloodiest rules in African history.
Up to 400,000 people are believed to have been killed under Amin's rule.
"For sheer personal callousness and bitterness, it's an appalling record and it's a disgrace on us all that he was allowed to stay in office for as long as he did," Lord Owen said.
Human rights groups and Ugandan government officials have expressed disappointment that Amin never faced trial for his alleged crimes. Although the Ugandan government had said Amin's body would be allowed back to the country for burial, one of Amin's sons has said the former dictator has been buried in Saudi Arabia.
"He is buried. The family decided and we have buried him in Jeddah," Ali Amin told Reuters news agency.
The son of a self-proclaimed sorceress, Amin had little formal education and joined Uganda's British-led colonial army as a young man.
He was appointed head of the army and navy under President Milton Obote in 1966, but overthrew Obote five years later and declared himself president for life.
The eight-year rule which followed was characterized by bizarre and brutal behavior.
A convert to Islam, Amin took five wives, fathered dozens of children and insisted on being called "Big Daddy".
In 1972 he expelled the entire Asian population of Uganda, blaming them for controlling the economy for their own ends.
Amin murdered hundreds of thousands of real and perceived opponents during his rule, reportedly feasting on the bodies of some of his victims and throwing corpses to crocodiles.
Ugandan presidential adviser John Nagenda told BBC World that it would have been a "good thing" to have put him on trial, but that many Ugandans who suffered through his rule would have a feeling of closure with his death.
George Ngwa, a spokesman for Amnesty International said Amin's death was "a sad comment on the international community's inability to hold leaders accountable for gross human rights abuses".
As Amin consolidated his rule, Uganda plunged into economic chaos as a result of mass expulsions, gross mismanagement and rampant corruption.
The United States cut off aid to Uganda in 1972 in protest at Amin's policies, which former U.S. President Jimmy Carter said "disgusted the entire civilized world".