"He's a huge talent, an exciting young English player and he's certainly one of those to keep an eye on," he said.
"As much as I'm a manager, first and foremost we're coaches," Coyle told BBC Radio Manchester.
"You want to help young players develop. You think back to when you were a young player and all the help you had from various coaches and managers throughout your career.
"If you can pass on any knowledge and experience to help young players go and have a glittering career, it certainly gives you a good feeling, because maybe you've played a little part in their development."
"We believe it can be a 'win-win-win' scenario," added former Burnley boss Coyle.
"It's a win for us getting a quality player like that, a win for Nick because he gets league time at a very high level, and a win for Manchester United.
"With league time under his belt and European experience, he'll go back there a better player."