22-year-old Grujic impressed in three consecutive starts for Hertha before suffering a serious ankle injury whilst playing against Borussia Monchengladbach in September.
After spending the second half of last season on loan at Cardiff City, the Serbian midfielder had the option to rejoin the Bluebirds, as well as Crystal Palace, Middlesbrough, Torino, CSKA Moscow and Lyon in the summer.
He instead signed an extension with Liverpool until 2023 and opted to join Hertha on a season-long loan.
"Marko Grujic is a very good player," said Milosavljevic.
"I knew him when he was younger at Red Star. I watched him for many, many years. And this is a player with top quality but he needs time to play in the Premier League.
"Now he goes to the German league to play for Hertha Berlin and I think this is a good step. And I think within two years he can play for Liverpool.
"Last year he played in the Championship for Cardiff. I played in Germany myself and I think now Marko needs quality games.
"If he play one year in Germany, he will become more mature for the Premier League. In England it is a very tough league. And in Germany it is similar but a little less."
Liverpool reportedly paid £5.1 million for Grujic in January 2016. He has made a total of 14 appearances across all competitions for the Merseyside club.