Danilo scored in Rangers’ 2-1 win over Sparta Prague on Thursday night as they took a big step towards ensuring qualification to the knockout rounds of the Europa League.
Rangers signed the Brazilian forward from Feyenoord in the summer and he has already shown his quality despite injury disruptions.
He has six goals in 16 appearances for Rangers this season but McCulloch indicated that there is far more to come from him in the future.
The former Rangers star highlighted the forward’s work ethic and link-up play that kept the Sparta Prague defenders on their toes throughout the game.
He stressed that given what he has shown so far, Danilo is likely to be considered as one of the best signings made by Rangers.
McCulloch said on BBC Radio Scotland: “Danilo was special tonight.
“Got his goal, great composure and great finish; got a goal chalked off but another great finish.
“The thing that impressed me the most was his work ethic, link-up play and he has got a desire to work hard, to work at the defenders and to not give them any time on the ball.
“The other side of that, his link-up play, he is coming short and spinning long, he is pretending to spin long and come short, linking up with his feet and one-touch to [Sam] Lammers – he was the full package tonight.
“I think that’s the best I have seen a Rangers team for a while, especially in the first half, and the best I have seen of Danilo as a whole.
“If he keeps going as he is going, he looks as if he is going to be a tremendous signing for the club.”
Danilo has been quickly emerging as the first-choice forward under Rangers boss Philippe Clement.