Traore believes that the 23-year-old Frenchman, who has been linked strongly with a move to Anfield alongside team-mate Steve Finnan in recent days, would be a great signing for the Reds.
Traore told the club's official website: "I know Steed Malbranque quite well and I am confident he would be a good signing for any club.
"He is a good player and he would definitely bring something to our team. We played together for the French Under-18 team in the European Championships in 1999. I could see then he was a good player and it doesn't surprise me that he has done well in the Premiership."