Zelalem, who is just 19 years of age and plays as a midfielder, has been on loan at Rangers from Arsenal since the summer of 2015.
The USA Under-23 international has established himself as an important player for the Gers and is playing a key role in their push to win the Scottish Championship title this season.
Warburton believes that when Zelalem returns to his parent club Arsenal at the end of the season, he will do so as a better player.
The Rangers boss has made a similar suggestion regarding 20-year-old defender Dominic Ball, who joined the Glasgow giants on a season-long loan deal from Tottenham Hotspur in the summer of 2015.
“Look at Gedion Zelalem," Warburton told The Daily Record. “At 18, he’s starting 20-odd games for Rangers and he will go back to Arsenal having played so many games for us and hopefully helping us achieve our targets, while they get back a better player.
“Tottenham have challenged Dom Ball by sending him here and we have to make sure we challenge our best young players in the same way.”
Rangers are at the top of the Scottish Championship table at the moment with 63 points from 25 matches.
The Gers are eight points clear of Hibernian, who are currently second in the standings and have a game in hand.