The Spain international feels the 21-year-old goalkeeper will prove an ideal replacement for Victor Valdes and says Bayern Munich is the best team in the world
The 21-year-old goalkeeper is under contract until 2015 but Die Fohlen has already conceded defeat in its bid to persuade the Germany international to sign an extension, meaning the club is now set to let him move to Catalunya this summer.
Dominguez, for his part, is not in the least bit surprised that Barcelona has lined up Ter Stegen as a replacement for the outgoing Victor Valdes, as he believes the shot stopper will fit right in at Camp Nou.
"He's one of the best goalkeepers in Germany," the Spaniard told Esports COPE. "Barca would be right to sign him. One of his big advantages is his age. He is so young and has a great future ahead of him.
"He's also very good with his feet and he has a great personality. He is a very quiet (person) off the field, yet a leader of the team. He is a rounded guy - and I have also taught him some Spanish!"
Turning his attention to former club Atletico, Dominguez admitted he is worried about its chances of victory in Saturday's La Liga showdown with Barcelona, given the Blaugrana's talismanic forward Lionel Messi is fit again.
"With Messi you cannot predict anything," the 24-year-old said. "He could come back against Atletico and score three goals. They have the best players in the world."
However, Dominguez feels that it is Bayern Munich that must be regarded as the strongest side in the game right now.
"They are the best team in the world and they are proving that," he said of the Bavarians, who won five trophies in 2013. "For me, they are the most complete team in the world. Even on the bench, they are all very good players."