Real Madrid open their LaLiga season on Tuesday night against Osasuna with Gonzalo potentially starting on the night.
Pandiani, who has been coaching at home in Uruguay, told AS of Real Madrid's young striker: "I love him.
"I followed him closely at the Club World Cup and I liked him a lot. He's the new Raúl. I see a great similarity between the two. He should stay at Madrid without hesitation and he's going to play there for many years.
"He's still young and still has a lot to learn, but this player is a fascinating newcomer. Plus, he's with a coach like Xabi Alonso who can give him all the necessary tools to make him the next absolute leader of Real Madrid."
Meanwhile, on Real midfielder and compatriot Fede Valverde, Pandiani added: "He's a humble, hard-working, dedicated, beloved player, and the best in his position and any other position he's put in.
"He adapts to everything and should be a role model for young players. Maintaining the level he's showing every year at a club where you can't even draw is very difficult, and he's achieving it."