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Cahill has been linked with a number of clubs as he looks to wind down his career, with Leeds United said to be currently leading the race for his signature over newly-promoted Aston Villa.
But asked if a top Premier League club should take a chance on the defender this summer, Mills told the Alan Brazil Sports Breakfast: “Without a shadow of a doubt.
“Obviously he wasn’t quite as good or had quite the presence of John Terry, but he’s not too far behind that.
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“If you want someone to come in to play two thirds of the games next season, and also bring professionalism, experience and be someone players can learn from on and off the pitch – he can add all of those things to the club.
“It’s a no-brainer to take him. He’ll just want to play and be a part of it.”
And he believes either Arsenal or Manchester United would be perfect next destinations for the 33-year-old, with both looking for both added steel and experience at the back.
He added: “The likes of Arsenal… and why aren’t Manchester United interested? They’re desperate for a centre-half!
“Everybody seems to be going the way of, ‘we can’t sign anybody over 30’, but Zlatan Ibrahimovic didn’t do too badly when he came [to Manchester United] at 36 [sic], did he?
“It’s not just about playing ability, it’s all the other attributes that these experienced senior players bring to the club.”
Listen back to a clip of Danny Mills on the Alan Brazil Sports Breakfast above