Pardew signed Perez for the Magpies during the summer of 2014, while he was in charge at St. James’ Park.
And the Spaniard has now developed into one of Newcastle’s key players, with recent reports in the Daily Star linking him with Arsenal and Tottenham Hotspur.
Pardew is not surprised by Perez’s rise, as he has been a fan of the 22-year-old ever since seeing him in action for the first time.
"He has a special quality that you don't see in too many players and everyone at Newcastle could see that as soon as he arrived at the club," Pardew told ESPN.
"We asked him to adapt to the pace of the Premier League very quickly as soon as he arrived at Newcastle and that wasn't easy for him at the start. He needed some time to appreciate what was needed in this league, but technique wise, he is top class.
"He has improved in the Premier League now and that is good to see. We always knew there was a special player in there and I'm not surprised to see him doing well."
Pardew is currently in charge of Crystal Palace, while Perez will be crucial to Newcastle – who are now managed by Steve McClaren.
The Tyneside outfit are battling against relegation, and they will be relying on the 22-year-old to grab the goals required to carry them away from danger.
Perez has made 15 appearances for Newcastle so far this season, scoring on three occasions.
Pardew, meanwhile, is doing a very impressive job at Selhurst Park and has guided Palace into sixth place in the Premier League table.