The former Spurs and England defender was forced to retire at the end of last season after losing his battle with long-standing knee injuries, and he has now been appointed as a club ambassador.
Spurs lifted only the League Cup during King's time with the club, but he believes their current squad can contend for major honours under the guidance of Andre Villas-Boas.
"I rate the current Spurs team very highly," King said. "I think we've got a young and ambitious manager who's great and is going to do well for the club.
"I think we've got a great group of players at a good age where they're improving all the time and reaching their peak.
"The way the team are progressing at the minute, hopefully in the next year or two they will be really challenging for the Premier League.
"Hopefully this season we will finish in the Champions League places and then keep doing that. It's a big club and you've got to make sure it's not just a one-off, you've got to keep doing it.
"Hopefully we can qualify this season and continue doing that for the future."
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