After two top seven finishes following promotion to the Premier League, and a disappointing 13th place, Wolves are currently eighth and fighting for a return to European football.
Players such as Ruben Neves and Pedro Neto will be hot property but former Wolves midfielder Cook believes Wolves can break into the top six if they hold onto key players.
When asked if a top six charge is possible in the years to come, Cook said: “I think it depends on how long you can keep your best players.
“If Jota was still in the team playing with the rest of the lads, what a team Wolves would have.
“The reality is that the longer Wolves keep their best players and the recruitment stays the same, then why can’t they challenge?
“It’s great to see Wolves doing so well at the minute.
“In years gone by they have really been a little bit of a yo-yo team between the Championship and Premier League, but those days seem to have gone now.
“They’ve really established themselves well as a Premier League team and they’re looking to go into areas now that Wolves fans probably never dreamed of.
“They’ve kicked on now. They’ve had a taste of European football and they want more - and rightly so, it’s an amazing club.”
The current Wolves set-up and squad is a far cry from the one Cook experienced in the old Division Two from 1989 to 1994.
But the 55-year-old is not surprised to see the club doing so well due to their impressive recruitment.
He added: “Look at Jimenez, Neves, Moutinho – you can go right through the team. Pedro Neto too, they’re all good players.
“They’re littered with very, very good players and they have a good manager. They’re doing great and the supporters are behind them. You can see how the club is in such a good place.
“They’re (Neves and Moutinho) outstanding players. Portuguese international footballers and Portugal are one of the top teams in the world.
“Wolves are very lucky to have two such talented lads.
“Neves has been an amazing acquisition for Wolves.
“Under Nuno when the recruitment drive changed to a lot of Portuguese players, all of a sudden they have such good players right through the squad.
“We were lucky at Liverpool to take Jota off you and what a player he is.
“The reality at Wolves now is that the club is in a great place, they have great players and the supporters must be so happy.”