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Selby's IBF featherweight world title defence against Jonathan Victor Barros in Las Vegas was called off on Friday.
The Welshman has said Carl Frampton and Abner Mares, the regular WBA champion, could be future opponents.
"Selby's not really had that one big fight which can make him that name," Khan told BBC Wales Sport.
"I think beating someone like Abner Mares or someone like [Leo] Santa Cruz or Frampton would definitely take him to a different level.
"They're big names in the world of boxing and [some] have titles so, definitely by beating one of those big names, Selby would be right up there.
"I think Selby has the talent to do it. He's a prospect to keep an eye on in the future."
Selby's third defence of his IBF world title was meant to take place on the undercard of Frampton's WBA featherweight title bout with Mexico's Leo Santa Cruz at the MGM Grand.
If he had beaten Barros, Selby was planning to challenge Frampton - with the Northern Irishman saying he would like the fight to take place at Belfast's Windsor Park.
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The abandonment of Selby's fight against Barros could delay those plans but, whenever it may happen, it is a fight Khan would like to see materialise.
"I like Selby. Selby is a very good fighter. He's a world champion himself, having that IBF title," the 2004 Olympic lightweight silver medallist added.
"The fight between Santa Cruz and Frampton is for a world title so unifying it and to have it [a Selby-Frampton fight] in the UK would be massive.
"Two British fighters fighting for two world titles in the same division would be huge. I think that could happen in the future."
The featherweight division is one of boxing's most competitive and open at the moment, and a bout between Selby and three-time world champion Mares would also excite Khan.
"It makes sense. Us fighters will fight anyone, whoever they put us in front of," he said.
"I think that Abner - I know him, I've trained with him - is a good fighter. I think that would be a good fight for Abner to have.
"And the winner of that could go on and fight the winner of the Frampton fight."
Lee Selby needs a high-profile fight to take his career to the next level, according to former light-welterweight world champion Amir Khan.