Rice is having a phenomenal Premier League campaign, as David Moyes' men sit in third place after 11 games.
He's been arguably the club's best player and, after their 3-2 win over Liverpool before the international break, has shown he is capable of mixing it with the best.
Former England manager Glenn Hoddle hailed Rice as 'the best player in the Premier League', and Cole doesn't disagree, adding the 22-year-old reminds him of his former Liverpool and Three Lions teammate.
"If Glenn said [Rice is the best player in the league], then it's true," Cole told talkSPORT. "He's the God.
"I've watched Declan develop over the years. He's a little bit like - and I don't want to put this kind of pressure on him - but he's a little bit like how Stevie G developed at Liverpool, where he just kept adding things to his game and adding things, and adding things.
"Declan's added goals to his game now with breaking from midfield with that power, and he's hitting the target and scoring goals.
"The sky is the limit for the lad - he really is a top, top player."
This comes after praise from former Chelsea captain John Terry too, who joined others in hailing the England man as one of the world's best.
Taking to Twitter, the ex-England international said: "Declan Rice is the best in his position in world football. What a player."
Rice was linked with moves to Chelsea and Manchester United in the summer, but the clubs were perturbed by the club's £100million valuation.
Moyes and Co. could probably demand even more than that now, after the midfielder's brilliant start to the season.