Scotsman wants England Under-21 striker to return to the the Reebok on loan to develop his game and believes the youngster will struggle to find regular football at his parent club
The 21-year-old has been at the west London club for two years since making his move from Manchester City and has struggled to find a regular football at Stamford Bridge.
However, a new lease of life came for the England Under-21 player following a loan move to the the Reebok where he was an immediate success, scoring eight goals in 12 appearances for Coyle’s side.
It remains unclear whether Sturridge has a future with Chelsea after boss Carlo Ancelotti was sacked on the final day of last season and the club are still searching for a new manager.
However, Coyle believes another loan spell at the Reebok will help the striker develop his game.
He told the club's official website: "I feel with Daniel that another period with Bolton Wanderers would certainly take him on to the next level of his career, and then be a starter for Chelsea.
"Just now he is under [Didier] Drogba, [Fernando] Torres, [Florent] Malouda, [Nicolas] Anelka, [Salamon] Kalou - as outstanding a player as Daniel is. Time will tell, but we give them the platform, the opportunity and the belief to play in the best league in the world."