Coe, also a double athletics gold medallist after his success at the 1980 and 1984 Olympics, believes his achievements on the track are eclipsed by Farah's double success.
Farah will leave London with his place in athletics legend assured - one of only seven men to run the 5,000m and 10,000m double, joining a storied list that includes track greats such as Emil Zatopek, Lasse Viren and Kenenisa Bekele.
And Coe, who showed no signs of reserve as he cheered Farah's from the VIP area, believes there is no argument about Farah's place in the pantheon of British sporting greats.
"He is now the greatest runner we've produced in this country," he said.
"Mo Farah's 5,000m race was superb, he did what he did in the 10,000m although I believe winning it was tougher because the opposition was younger and perhaps had less respect for him
"He covered every break, it didn't get spooked into doing something too early, he controlled the race from the middle of the pack which is tough to do and then put himself into a winning position.
"It was absolutely top draw."
Meanwhile, Coe has insisted he believes UK Athletics head coach Charles van Commenee should stay in his role, despite British athletes failing to deliver his target eight medals.
However, they still finished fourth on the medal table - behind USA, Russia and Jamaica - with four golds, their best return since 1980 when Coe, Steve Ovett, Daley Thompson and Allan Wells all topped the podium.
"The team has done more than enough and I'm a fully paid up member of the Charles van Commnee fan club - I encouraged him to take the role," added Coe.
"He has a good strong team and it will be even better in two years and even better in four.
"I hope he'll still be in his job when the Olympic Stadium stages the World Championships in 2017."