Dolly Parton and Garth Brooks on Creating a 'Lasting Friendship' as They Prepare for the 2023 ACMs (Exclusive)

Dolly Parton and Garth Brooks are closer than ever as they gear up to co-host this year's Academy of Country Music Awards.

The country stars caught up with PEOPLE in light of the upcoming gig on Thursday at the Ford Center at the Star in Frisco, Texas, and revealed that preparation has only made their bond stronger.

"A lot of people do think that we're close friends and we feel close. We definitely have that kindred spirit, but we've never had a chance to spend a lot of time together," the "Jolene" singer, 77, tells PEOPLE exclusively.

She adds, "We see each other now and then but over the last few weeks as we've been preparing for for this, I feel like we are beginning to build a really good lasting friendship. I've always admired him and respected him and I know who he is and what he does, and I have a lot of friends that are close to him."

Check out PEOPLE's full ACM Awards coverage to get the latest news on country's big night.

For Brooks, 61, working with Parton was like a dream come true.

"I've been a fan for a while. It's not an everyday thing that you could just sit down with someone like Dolly Parton," he says. "We did the promos about a month ago. But when we walked in we held hands. It was like all of a sudden now, I felt we'd known each other forever."

The award show will mark Brooks' first time hosting and he says he feels "excited and anxious" — but having Parton as his counterpart has made the experience that much better.

"The great thing is, [I've] got Dolly and Dolly has been so sweet. I think it's gonna be pretty easy. Just hook your sled to this woman right here and I think we'll have a smooth ride," he says.

If Parton were given the opportunity to pick out Brooks' outfit for the night, she says she wouldn't change a thing about him.

"I would pick something black with the swoop, dark beads on it and a big black cowboy hat. Oh that is you!" she says with a laugh to Brooks.

"I wouldn't change anything about Garth so whatever he wants to wear, I'm gonna not even try to match him. I'm just going to be me and he's gonna be him," she adds.

They also revealed their favorite songs of each others, with Brooks eagerly responding first: "That's easy for me, 'Jolene.' It's just an amazing piece."

Parton adds, "I love everything that Garth does when I'm out being joyful. We got the 'Friends in Low Places' and 'The Dance,' I love so many of his songs."

The 58th Academy of Country Music Awards will air live from Ford Center at The Star in Frisco, Texas Thursday, May 11 at 8 p.m. ET/5 p.m. PT and stream live exclusively on Prime Video.