The young left-back has excelled in a largely forgettable campaign for the Black Cats but is set to return to his parent club this summer rather than extend his stay on Wearside
Rose will make the final appearance of his loan spell against Southampton this weekend as Sunderland face his parent club on the final day of the season and the 22-year-old is therefore ineligible.
Although Rose has indicated a desire to move to the Black Cats on a permanent basis, Tottenham are likely to recall the England under-21 international following his impressive form but Di Canio believes the youngster will continue to progress whoever he plays for.
|16/1||Sunderland are 16/1 with William Hill to be relegated
The Italian did concede, however, that there are areas of Rose's game that he can work on.
He revealed: "It's obvious he can play at the top level, but everybody has to improve.
"In my opinion, he can improve a lot defensively. He's an attacking-minded left-back, but he has to improve a lot defensively.
"People have to realise there are two phases in the game - possession ball and non-possession ball. It's crucial to be good in both situations.
"I don't want to say he's not very good when we're not in possession of the ball, but he can improve a lot. He can improve the timing of his tackling and he needs to learn when and how to be aggressive.
"But everybody can improve, and he's only 22.
"It's easy to talk about his quality, but if we don't tell him he has to improve, he's probably never going to."
Rose's future is something that has yet to be decided but Di Canio was eager to focus on the time being, adding: "He's our player at the moment. Sunday will be his last game and then we will see. I don't want to talk about the future because we have to focus on the next game."