The former England captain was left out of Stuart Pearce's Team GB squad for the forthcoming games, despite being tipped in some quarters to skipper the side for the tournament.
|Beckham in the goals for Galaxy
Beckham has been in scintillating form for his club since the snub, with four goals and four assists to his name in the last three weeks, and Donovan believes the 37-year-old's displays show that he can still play with the very best.
He told reporters: "David has been playing great and can still do it.
"It's a shame he’s not going to London to play.
"He's been terrific just recently and I think most teams in the world would want a guy like that on their side in the form he's in right now."
Beckham set up goals for Donovan and Robbie Keane during Galaxy's 3-1 win over rivals Chivas on Saturday to continue his excellent run of form.
However, Ryan Giggs, Craig Bellamy and Micah Richards were preferred to the former Manchester United man as the over-23 options when Pearce named his 18-man squad on July 2nd.
Team GB begin their Olympics campaign against Senegal on Thursday evening at Old Trafford.