De Rossi retired from football earlier this year following a distinguished career.
The Italian departed Roma at the end of the 2018/2019 season after almost two decades with the Serie A outfit before a short stint with Boca Juniors in Argentina.
The 2006 World Cup winner recently revealed to Sky Italia about his intention to go into management, pledging to follow in the footsteps of his father, who is currently the youth team coach of Roma.
Ranieri worked with De Rossi during his two spells as the head coach of Giallorossi, and the former Chelsea and Leicester City boss believes his compatriot has the oomph to be a great manager.
“De Rossi was already a coach on the field,” Ranieri told Sky Sport Italia. “Doing it from the bench is another matter entirely, but he has everything it takes to become a great coach.
“His father gives good advice too, someone who knows full well how this profession works.”
Ranieri recalled when De Rossi was making his final appearance as a Roma player, which was also the last on the bench for his second stint as a manager in Rome.
“It was an emotional day and I continue to do this job for the emotions that it brings me. I’ve been a Roma fan since I was a child, then I became a professional, but that child is always within you.”