The 25-year-old has been the Reds’ standout performer in a difficult first season under Brendan Rodgers, scoring 15 Premier League goals.
Suárez’s compatriot Coates, who joined Liverpool in 2011, considers the former Ajax man to be on of the best strikers in Europe.
But the defender warned Liverpool’s rivals that there is still more to come from Suárez.
“I think Luis can still improve and he is currently one of the best strikers in Europe,” said Coates.
“There are a lot of good strikers but it isn’t just about his great goalscoring form.
“It’s the way he works hard for the team in other ways, like pressing and closing down the opposition and winning back possession quickly for the team. That is a great help for the team.
“If you put all that with his never-say-die attitude that is what makes him such a great player. He never gives in and what you see him doing during a game he does that every day in training.
“I don’t see any reason why he can’t keep up this form for a long time to come. Let’s hope he does.”
MORE: The latest football news