The 41-year-old Derby manager is reportedly set to seal a sensational return to Stamford Bridge as manager within the next two days.
And Cudicini, who played alongside Lampard for eight years at the Blues, believes the former midfielder has what it takes.
"It's hard to give an opinion until the club have announced a new manager," Cudicini told the Evening Standard.
"But I know Frank, I played with Frank. I think that, for the club, it would be fantastic. He has just started his career, but in football you can't really plan much. Sometimes, a chance comes along and if you have the chance, you have to take it.
"Obviously, for the club, he was such an important player and potentially as a coach he can be too.
"I think he has all the ability to become a great coach, but he has just started. He had an important season at Derby, so we'll see what happens."