The 32-year-old midfielder signed for Villa after his contract with West Ham ended last month when he agreed to become part of Lambert’s squad.
After rising to prominence as a teenager, Cole won 56 England caps during a career which took him from Upton Park to Chelsea, Liverpool and Lille, but his contribution has diminished in recent seasons.
However, Lambert is convinced he still has what it takes to succeed and perform at the highest level.
The Villa boss told the Birmingham Mail: "As soon as you start to lose the fire from your stomach as a footballer, there's no point.
"He still wants to do really well and he's still hungry to do really well.
“That's a sign of a top, top player.
“If you have still got the attributes at that age that you had when you were 16 or 17 starting out, you will not go far wrong.
“He can make things happen. If he can perform the way I know he can then we have got a really good player on our hands.”
Lambert says he was keen to snap up Cole as soon as he found out that the midfielder had become available, as he believes the former Chelsea man’s experience will be hugely beneficial.
“That one intrigued me, when I noticed all of it I thought ‘I am going to try and see if we can do something’,’’ he added.
“He has won things at the highest level, played in masses of big games, massive England games and knows what it’s like to win things.”