The 24-year-old has played three matches for his club Leicester after 15 months out due to injury, doing little to suggest he is back to the wrecking-ball form that inspired England to a famous victory over New Zealand in 2012.
But he has been named in the 23-man squad to face Wales in the weekend in a game that will potentially decide the destiny of this year's Six Nations title.
"He probably only has 20 minutes of test rugby in him at the moment but that 20 minutes could be pretty good," Jones said.
"I think 12 is his best position, he can carry the ball off the gain line, he's got the ability to catch and pass," the Australian added.
"He's got all the attributes to be an outstanding 12. If you look at it on pure athleticism Manu is not far behind [New Zealand centre] Ma'a Nonu at all."
Jones sees Samoan-born Tuilagi, who weighs just under 18 stone, as his first-choice inside centre, a position that former England manager Stuart Lancaster never sorted out during his four years in charge.
Such was Lancaster's confusion that he played rugby league convert Sam Burgess in last year's vital World Cup group game against Wales after only a handful of union internationals.
England lost 28-25 to the Welsh at Twickenham and a few weeks later Lancaster was sacked and Burgess announced he was returning to play rugby league in Australia.
Jones played Owen Farrell at inside centre in the first three Six Nations matches alongside George Ford at first five-eighth, preferring Farrell's kicking ability and game management skills to more attacking options.
Farrell contributed well enough to three England wins but Jones wants more bulk in his backline to compliment the forward power led by rampaging No 8 Billy Vunipola.
The plan will be for Tuilagi to bust holes in the opposition defence, creating space for the silky running skills of outside centre Jonathan Joseph and the raw pace of wingers Anthony Watson and Jack Nowell.
Jones has proven to be the ultimate pragmatist during his coaching career and the attractions of Tuilagi's sheer size and brute force have proved irresistible.
His performance on Saturday against a streetwise and combative Welsh back row and an opposite number in Jamie Roberts, who shares many similar attributes, will go a long way to determining if England can stay on course for the grand slam.
