Ozil scored one goal and set up another in Germany's 5-3 win over Sweden on Tuesday, having already played a key role in the 3-0 victory against Republic of Ireland that sealed qualification for the 2014 World Cup.
Given the playmaker has also made a sensational start to his Gunners career following his summer switch from Real Madrid, Zico believes the 25-year-old should be in contention for the Fifa Ballon d'Or.
"Ozil is a great player. He's the brain of the German national team," the Selecao legend was quoted as saying by Sport Bild.
"I already get excited just by seeing him play. He has the ability to read the game and play a killer pass.
"Germany have not had a playmaker like him since Wolfgang Overath in the 1970s. It would only be right if he were among the candidates to win the Ballon d'Or."
Zico then went on to discuss Germany's World Cup chances and he feels Joachim Low's men are unlikely to emerge victorious next summer.
"Germany are a great team with the potential to win the World Cup, but I don't think they will win it," he mused.
"History is against them. A European team has never won the World Cup in South America."