McInnes is in contention for the job at Ashton Gate as the Robins look to replace Keith Millen, who was sacked earlier this month.
He has already had an interview and Coyle feels he has all the qualities needed to be successful in the English game.
It is a path Coyle has already followed, having left St Johnstone in 2007 to take charge of Burnley and then move on to his current job at Bolton.
Coyle worked with McInnes at McDiarmid Park and has watched his former prot?g?'s progress with interest over the past four years.
"Bristol City are a massive club. Everything is in place for them to go on to become a Premiership club," Coyle said in the Daily Record.
"They have plans for a new stadium next season and it is a marvellous opportunity for whoever they go for.
"The job is perfect for a young and ambitious manager and if they opt for Derek they will be getting a man I know well, having taken him to Perth as player-coach.
"His work ethic is immense and he is a real players' manager.
"Heading to England would be the natural progression for Derek and Bristol would be getting a great boss.
"Look at the work he has done at Perth. He has shown an eye for a player at St Johnstone and it's no surprise Bristol are considering him for the job."
Source: Team Talk
Source: Team Talk