The winger, who has been out of favour at Manchester City for some time, has been linked to both Aston Villa and Crystal Palace this January.
And Lambert says the Manchester City man 'has it in him to be a real good player.'
“It has been a hard move for him going to Man City," the Aston Villa boss told reporters on Thursday afternoon.
“Man City has probably been a bit different from what he expected. I know the lad from his Swansea days.
“Swansea and Norwich were vying to get out of the Championship at the same time. Swansea had him and the lad Nathan Dyer down there to get them out of the league.
“He ends up scoring a hat-trick in the play-off final and then the year he had in the Premier League with Swansea he was outstanding. He has it in him to be a real good player.”
Villa travel to Leicester City this Saturday, while Crystal Palace host Tottenham in the late kick-off. Manchester City, meanwhile, travel to Everton - also on Saturday afternoon.