Potter had been linked with the job, himself, before the German was named Gareth Southgate's replacement.
"They've made a really good appointment for a coach that is obviously successful, and has won lots of things," Potter told the BBC's Planet Premier League podcast.
"It feels like that was the movement towards how we need a winning coach, a top coach that can help these top players. (For that) Thomas is a fantastic coach and a great appointment.
"Do I think that an English coach can win the World Cup or a major trophy? Yes, absolutely I do.
"You look at the previous Euros winners - the Spanish coach (Luis de la Fuente) I don't think was a Champions League-winning coach?
"I don't think the Argentinian coach (Lionel Scaloni, who won the World Cup in 2022) was a Champions League-winning coach?
"But at the same time, I understand if that's the criteria (being a winner at club level)."