The Bhoys will face Old Firm rivals Rangers in the semi-finals of the Scottish Cup this season.
Celtic are in the Scottish Premiership at the moment, while the Gers are currently in the Scottish Championship.
Former Celtic striker Sutton believes that the Bhoys have a better squad than Rangers.
The Englishman has also suggested that Rangers manager Mark Warburton would take the current Celtic squad over his own players.
“When Celtic’s squad are firing on all cylinders, I can’t help but think they are still much better than Rangers,” Sutton wrote in The Daily Record.
“Players such Leigh Griffiths, Kris Commons, Scott Brown and Nir Bitton are of a far-higher standard than anyone at Rangers at the moment and that it in no way me being disrespectful to anyone at Ibrox, it’s just a plain fact to me.”
“Celtic still the hold the aces,” added Sutton. “The bottom line is Warburton would, on top form, take virtually every Celtic player over his Rangers players on best form.
“But Celtic haven’t been performing to top form. They have five weeks to sort that. And that is what potentially makes this season’s clash mega-exciting and a slightly different proposition from the non-event of just over a year ago.”
Celtic have the best squad in entire Scotland, and on paper they should be able to win against Rangers in the semi-finals of the Scottish Cup.
However, Ronny Deila’s side are not in good form at the moment, and there is a chance that they could lose the Scottish Premiership title this season.
Rangers have gone from strength to strength this season, and the Gers will be confident of getting the better of their Old Firm rivals.