The young English right-back has been in sublime form for the runaway league leaders this season, scoring two goals and creating a further 10 in 26 league appearances.
Speaking to The Mirror, Cafu said: "I think Alexander-Arnold is one of the best in the world, no doubt about it.
"He's a great player – and I would say he has the same characteristics as I did.
"He has got big potential. He is strong and skilful, he really takes the game forward and he's a player who sets up goals for Liverpool.
"So, yes, I can see lots of similarities between him and me when I was playing. I would say he's got a Brazilian instinct in the way he plays."
The 49-year-old, who remains the most-capped Brazilian player of all time, also tipped Alexander-Arnold to win the Ballon d'Or later in his career if he keeps playing the way he currently is. body check tags ::