The summer signing from Porto impressed at the back for City as they drew 1-1 with their Premier League title rivals at the Etihad Stadium.
After being thrown into the starting lineup for the high-profile fixture, Kompany believes that the 23-year-old Frenchman gave a "tremendous" account of himself.
"He was tremendous. I don't think he's played for five months," Kompany is quoted as saying by Sky Sports News. "I think it is up to him how good he could be but it looks like he is eager to progress, which is important at his age as he is still young.
"Obviously you can see he has all the basics to be more than a good defender. He will need some time, like everyone else, and with time he will improve. Going by this performance you will be looking forward to what he can achieve."
City are back in action on Wednesday night when they host Sheffield Wednesday in round three of the League Cup.