Kevin Phillips played for Crystal Palace between 2013 and 2014.
The Derby County assistant manager says that Pardew has developed a quality squad at Selhurst Park, and he feels they can compete in the upper echelons of the top-flight next season.
"I think they can stay where they are," he predicted. "I think they can push for a Europa League spot. They have shown that they can be resilient and they've got strength in depth.
"When Damian Delaney is out, they can bring in [Brede] Hangeland, and they've shown they can leave [Wilfried] Zaha out, so he can come on and change the game.
"They have options in the middle of the park, too, so if they can keep everything fit I don't see any reason why they can't be right up there. They've got goals in the team, they've got pace and they defended solidly. They're in a really good position at the moment."
Palace have already won four games this season, with their most recent success coming against Watford at the weekend.
In the contest, the Eagles showed their resilience, as they ground out a victory at Vicarage Road despite not playing at the top of their game.
Palace have become associated with attacking play, but it was their defensive strength which was highlighted on Sunday, as a Yohan Cabaye penalty fired them to victory.
If the Eagles are to make it into the Europa League they will need to show this grit on regular occasions, with optimism growing rapidly at the London club.