The England international has made a promising start to the Premier League season to help Liverpool FC win their opening five fixtures.
Milner got on the score sheet in a 2-0 win at Crystal Palace, while the Liverpool FC vice captain made assists in victories over West Ham and Leicester.
The 32-year-old has been a key player for Jurgen Klopp since the former Borussia Dortmund head coach took over the reins at the Anfield outfit in October 2015.
Milner moved to Liverpool FC in a free transfer from Manchester City after winning two Premier League titles, the FA Cup and the League Cup at the Etihad Stadium.
Former Manchester City manager Pearce raved about Milner’s contribution to the Premier League during his decorated career in the English top flight.
“Milner’s a player that’s been so underrated,” Pearce told talkSPORT.
“There’s a saying in boxing on who is the best pound-for-pound fighter in the world.
“I think Milner is the best pound-for-pound footballer in the Premier League potentially there has been.
“I don’t think he’s been the best footballer by a million miles but you should throw everything into the mix like professionalism.
“He’s 32-years-old now and he’s ridiculously low maintenance and I’ve never seen one detrimental story about Milner in the papers.
“He’s probably run more than any player that’s taken to the pitch over those last 16 years, he’s played over 130 games at all age groups for the England national team.
“At one stage Manchester City thought he was surplus to requirements and he went to Liverpool. Then all of a sudden he plays a season at left-back for Liverpool and he’s fantastic there!
“You just can’t keep him down. He will not go under.”
Milner has scored 16 times in 137 games in all competitions during three seasons at the 18-time English champions.
Liverpool FC are in second place in the Premier League table following their impressive run of five successive victories.
The Reds will take on Southampton at Anfield this weekend following a 2-1 win at Tottenham.
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