Elaborating on a previous work by Simon et al (2000 Phys. Rev. Lett. 85 1783) we propose a realizable quantum optical single-photon experiment using standard present day technology, capable of discriminating maximally between the predictions of quantum mechanics (QM) and noncontextual hidden variable theories (NCHV). Quantum mechanics predicts a gross violation (up to a factor of 2) of the noncontextual Bell-like inequality associated with the proposed experiment. An actual maximal violation of this inequality would demonstrate (modulo fair sampling) an all-or-nothing type contradiction between QM and NCHV.