Michael Douglas — Matt Damon, Give Me a Hand With My Giant …

And the Emmy for Outstanding Use of Sexual Innuendo goes to … Michael Douglas … who whipped out a penis joke, and a gay sex reference during his acceptance speech.

Douglas won the trophy for his role as Liberace in “Behind the Candelabra” … which co-starred Matt Damon as Lib”s lover, Scott Thorson.

As he held up the Emmy statue, Douglas motioned to Matt, and said … “You were magnificent. You really deserve half of this. So, do you want the bottom or the top”

The crowd loved it. Check the clip for Michael”s meaty double entendre … about his penis size.

Also interesting: Michael”s still wearing his wedding ring … and even thanked Catherine Zeta-Jones.