The Brazilian scored two goals on Sunday as City beat Swansea at the Etihad Stadium, a result that moved them up to third in the Premier League table.
He now has three goals in three appearances since his move from Palmeiras was ratified and has impressed with the quality of his all-round contribution.
Toure has been impressed with the start the 19-year-old has made – but warned against getting carried away too soon.
“He is a very good player,” Toure said. “He’s very quick, sharp and clever.
“We realise we have to be careful, though, and we shouldn’t get too excited because he has to be focused.
“What we want to do is just continue to keep going and at the end of the season we can talk about him.
“We have to keep focused because we have important games coming up and we have to be ready for that as well.”
STARS ON SUNDAY: Gabriel Jesus celebrates with Leroy Sane and Pablo Zabaleta
There is now a genuine belief that City have put together a group of talented youngsters who could play a key role in the Club’s future.
Leroy Sane, 21, signed from Schalke in the summer, has delivered a string of superb displays on the left in recent weeks, with his pace and ability to beat defenders offering City a new dimension going forward, while 22-year-old Raheem Sterling continues impress on the right.
Toure says it’s vital to have quality young players in the squad if the Club want to keep progressing.
“We need to have young players because City are always a team who wants to win the league,” he said. “The mentality of the club is to try to get new players in and try to do as best as possible.
“When you see (Kevin) De Bruyne, (David) Silva, Jesus, Sane, and Raheem playing well, you realise we have a great squad with some young players.”
City are now just a point behind second-placed Tottenham – but remain 10 points adrift of runaway-leaders Chelsea.
CALL TO ARMS: Yaya Toure has urged City to fight until the end of the season
Toure admits it will be difficult to usurp Antonio Conte’s men at the top but feels City are capable of pushing them all the way, if they can maintain their current form.
“It was a good performance (against Swansea),” he said. “We needed to win and it was very important to get the three points to be close for the rest of the season and we did the job.
“We are 10 points behind Chelsea. I think it’s tough. The Premier League is very, very tough and all we have to do is just focus on ourselves and keep going.
“If we continue to win I think it’ll be a very, very exciting end to the season.
“Now, with the quality of players we have, we just have to perform well.
“That’s the most important thing, to keep winning because the Premier League is so demanding, so tough.”