The 21-year-old goalkeeper is reported to be a top target for the La Liga giants as they start to prepare for life without Victor Valdes - with the Spain international set to move on at the end of the season when his contract expires.
A summer switch is said to be in the offing, with Barca planning long-term.
It has been suggested that Ter Stegen may struggle to handle the expectation at Camp Nou, having only been a Bundesliga regular for two full seasons.
Dominguez is, however, of the opinion that quality outweighs inexperience - although he would like to see his talented colleague remain in Germany for a few more years.
"There's no such thing as being too young when you are good - and Marc is very, very good," he told Bild.
"I am just happy that he plays for Gladbach and I hope that he stays here. He can always join Barcelona in five years' time or so if he keeps up this form.
"We have not spoken about Barcelona yet."