The Blues striker ended his European campaign this season without a goal after Costa failed to trouble the Paris Saint-Germain defence in the second leg at Stamford Bridge.
Costa, who moved to Chelsea in a £32m deal from Atletico last summer, has scored just one goal in his last seven appearances in all competitions.
Former Blues striker Hasselbaink believes the west London side are struggling to create chances for the 26-year-old Spain international.
“Diego Costa needs space behind the defence, that’s where he’s at his best,” Hasselbaink told talkSPORT. “The Champions League is another level to the Premier League though.
“This year, he doesn’t look as good in the Premier League. Has he had as many chances in the Premier League? I don’t think so.
“Last year he had that space when playing for Atletico Madrid, but this campaign he hasn’t looked as good in Europe as when he’s playing in the Premier League.”
Costa, who won the La Liga title last season, has scored 17 goals in 21 Premier League games in his debut campaign in England.
The Brazilian-born forward won his first trophy with Chelsea earlier this month after the Blues edged to a 2-0 win against Tottenham Hotspur in the League Cup final.
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