The Blues legend believes the 19-year-old would settle in with the club's academy graduates, who have impressed under Frank Lampard
The Blues have been heavily linked with the England international, who has emerged as one of the brightest young players in Europe since his breakthrough in Germany.
Sancho, 19, joined the Bundesliga side from Manchester City in 2017 and has gone on to score 31 times and made 36 assists in 90 appearances.
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The winger has had run-ins with the Dortmund bosses this season, however, which have sparked rumours that he is open to returning to England.