Hoy's latest gold in the keirin has seen him go above Redgrave in the list of Britain's most decorated Olympians.
The Scot claimed after the race that it could well be his last Games but Redgrave, who congratulated Hoy in person after breaking his record, believes that he may carry on.
"We've all said things about retirement in the heat of the moment - I carried on for the next four years after saying that," the former rower told BBC Sport.
"Chris has the capability, he's still a young man in my eyes. He's on the top of the world at the moment and he can carry on for the next four years if he wanted to."
The last of Regrave's five Olympic golds came at the Sydney Games in 2000.