In a radio interview on the Alan Brazil Sports Breakfast show this morning, the former Blues boss - who managed in west London for eight months in 2007/08 - has predicted the 34-year-old midfielder will sign a new contract.
Grant added that big game players with Lampard's personality can only be beneficial to Chelsea's young players coming through to the first-team, saying that his experience and knowhow is invaluable to the club.
"Frank is good for Chelsea," explained the Israeli coach. "He is like Paul Scholes and Ryan Giggs for Manchester United. He is good in the dressing room.
"He is ambitious to win titles, which I think all the young players at Chelsea need. There is some good talent that needs that winning mentality Frank can bring."
Despite Grant's controversial sacking after he had helped Chelsea to a second-place finish in the Premier League, and guided them to the Champions League final in Moscow - missing out on both trophies at the expense of Manchester United - he remains close friends with the Stamford Bridge club's Russian owner Roman Abramovich, and was even mooted as a potential successor to current interim boss Rafa Benitez.
He added: "I have a feeling that Frank will stay at Chelsea for one more year at least."