The former British player coached the Serbian legend at last year's Australian Open and believes that the 38-year-old possesses the ability to topple Carlos Alcaraz and Jannik Sinner to become the sport's outright record holder in terms of major wins.
Murray told Sky Sports: "I think that he can. The difficulty is when you get to the age that he's at, if you play too much tennis, you risk injury, or not being fresh for the majors but then if you're not competing enough and your body is not match-hardened and ready to play seven matches across two weeks, it is also very difficult physically.
"Last year, he made the semi-finals of all four majors, but definitely had three injuries across those events and that's the balancing act.
"It has to be perfect preparation with enough match play and enough training, but you could see at the Australian Open with the results that he had, beating Alcaraz last year and beating Sinner this year, that he still has the potential to do it."
Djokovic reached the final of the Australian Open earlier this year and explained that he sees no reason to bring his tennis career to an end if he can keep competing at the highest level.
The former world number one said: "It was an incredible feeling to beat Sinner in five sets in one of the most epic matches I’ve played in Australia in recent years.
"Then I had another great match with Carlos, who was simply too good in the end.
"For me, it was a phenomenal result. More than anything, I proved to myself - and to others - that I can still compete at the highest level and beat these guys.
"My logic is simple: why stop as long as I still have the fire, the flair, the quality and the motivation?"