The forward has hit three goals in his opening four league games this year, with his opening strike coming at Bramall Lane against Sheffield United. He then followed that up with a brilliant brace against AFC Bournemouth.
Cottee, who scored 27 goals in 88 appearances in all competitions for the Foxes, says he is extremely impressed with Vardy's performances and the understanding he possesses with teammates Youri Tielemans and James Maddison.
'He's a player who's on top of his game'
Talking to LCFC.com, he said: “I’m watching Jamie [Vardy] at the moment and he’s a player who’s on top of his game.
“If you’ve got a player like that in your team and you know you can get the ball to him, I think Jamie would be the first to acknowledge that he’s got two really good players in James Maddison and Youri Tielemans that create things for him.
“At the moment, Jamie is leading the line as well as any forward in the Premier League.”
'It was just absolute perfection'
Following his brace before the current international break, Vardy has taken his Premier League goal record to a brilliant 83 strikes in only 180 matches in the competition. Within that number, there has been a collection of extremely eye-catching efforts, one of them being the delicious lob that he scored against Bournemouth last time out.
Cottee also highlighted the 32-year-old for having the instinct and craft to pull off a goal of such immense skill.
He said: "His finish against Bournemouth, the first goal, was a fantastic finish. It was a different type of volley, but it reminded me of his goal against Liverpool in the title-winning season. This one was just an incredible touch.
“It’s always great when you lob the ‘keeper and the ball almost hits the net without bouncing. It was just absolute perfection.”