The legendary coach has lavished praise on the German champions as they prepare to take on Bayern Munich in the DFB-Pokal on Wednesday
The Bavarians have been in fine form this season, and are still in the hunt for an historic treble, but the 78-year-old feels that beating the champions will be tough.
"Dortmund are in a position to beat anyone," he told Sport1.
"Bayern and BVB tell their own stories. The two are quite rightly up there. It won't be a walk for Bayern on Wednesday, they cannot be too confident.
"It is very difficult for Dortmund. Bayern are currently playing excellent football. I saw them against Bremen on Saturday. At Bayern this season, there is a harmony that is rarely seen.
"Dortmund have a lot of good youngsters, who operate at speed and are different to Bayern."
However, Lattek does not expect the two clubs to dominate the Bundesliga in the coming years.
"Other clubs will come to the front just as Stuttgart and Wolfsburg did. But the teams that emerge may not be as strong as Bayern.
"It will be very interesting to see how Dortmund evolve over the coming years."
Finally, Lattek said that Pep Guardiola may find life difficult at the Allianz Arena as he looks to familiarise himself with his new surroundings once he takes the reins in the summer.
"He doesn't know the players and how they tick. I don't know who he will bring to his coaching staff. He was an excellent coach in Spain, but just because he had success with Barcelona, doesn't mean he will have with Bayern."