Prior to joining the Bundesliga outfit in the January transfer window, Haaland was heavily linked with almost every top European club.
The 19-year-old has hit the ground running since joining the Black and Yellows, having already scored eight goals in his first four matches in Germany.
Fjortoft believes the former Molde FK striker will one day play in the Premier League, but Dortmund is the right club for his development.
"Alfie Haaland (his father) always said we should think of the difference between a club wanting a player and needing a player,” the 53-year-old told BBC Radio 5 Live.
"What I like about Team Haaland is they have always taken the development of the player first. He is at the club he should be, where he can develop.”
"Do I think he will play in England one day? Of course he will. He was born in England, but at this time Dortmund is the best place for him to be."
Dortmund are widely known for giving opportunities to young players , but the Norwegian believes the Westfalen-based team should be respected as one of the best teams in the world.
"You always define big clubs, it is not like Dortmund is a development club," he added.
"They get [attendances of] 81,000 every week, they are in the Champions League - which some clubs aren't at the moment - and they are used to developing players into great players.”
"He can improve and he should improve, that is why he went to Salzburg not Juventus because they have a great way to educate young players.
"They could have gone to Manchester United this time or Juventus but he chose Dortmund. A 19-year-old waking up after a hat-trick on his debut, it is great to wake up in Dortmund, not a Manchester, not a Turin.”
“It is good for the progress of his career.”
