French international Lloris arrived at White Hart Lane from Lyon last summer and soon became Andre Villas-Boas's first-choice keeper ahead of Friedel.
However, rather than bemoan his number two status, speaking to Goals on Sunday, the veteran American hailed Lloris's performance since he signed for Spurs.
"Hugo is a very good goalkeeper and very quick in his decision making off the line," said Friedel. "AVB wants us to play a high line and wants us to attack teams. With that Hugo is very good for that style - it's not really his starting position, more the decisions that he takes.
"Hugo will make a decision and just go. The tackle that he made on Theo Walcott or the save that he made at Cardiff - they were right on the borderline of being a red card or not.
"I'm happy he does it so that the team can win because it obviously works. In 10 games we've conceded two goals. Can Hugo be one of the best ever for Tottenham? Time will tell, but he's an outstanding goalkeeper."
Friedel joined Tottenham from Aston Villa in 2011.