Kovac gave the 17 year-old attacking midfielder in defeat to Bayern Munich on the weekend.
"We're thrilled to have him with us. He's 17 and will undoubtedly do well. I'm happy with his debut against Bayern. Which, as you can imagine, wasn't bad," Kovac told Kicker.
"He's a fantastic player and, if he stays healthy, he could have a great career. I can already see what he can do in the future.
"He'll be an excellent player and represents not only the future of this club, but also of Italian football and the Italian national team."
Dortmund snapped up Inacio two years ago from Atalanta and Kovac added, "Italians call him a 'playmaker'. He's a creative player, so I see him as a good number ten, but also as a number eight."
