Suarez has been in lethal form for the Reds this season, leading the league's scoring charts with 29 goals in just 28 matches to help Liverpool to an unexpected title challenge.
"I think he belongs right in there. He is just such a fantastic player. He should be the player of the year, with Eden Hazard and Yaya Toure probably the others that spring to mind. I can't think of anybody else who has had a season like him," Keegan told BBC Sport.
"He is going to break all records at a club like Liverpool. This is Liverpool, where you have had Kenny Dalglish, Ian Rush, Robbie Fowler, Michael Owen and yet he is going to break all those records if he stays fit.
"If you said to most people in this country that they had to buy a ticket to watch one player at the moment then I think most would go to watch Suarez as he is so exciting."
Keegan also admitted that he is "surprised" to see Liverpool challenging for the title this season.