The 17-year-old has made seven appearances for Liverpool this season and became the youngest scorer in the club’s history when he netted against Leeds in the EFL Cup.
The Nottingham-born striker is eligible to play for Wales through his maternal grandfather and has turned out for the nation at Under-16, Under-17 and Under-19 level.
Woodburn has been handed his first chance to prove his worth with the senior side following Coleman’s latest squad announcement this week.
Coleman has included the Reds teenager in the set-up for the 2018 World Cup qualifier with the Republic of Ireland on March 24.
Saunders believes it is the right decision to ensure Woodburn commits to Wales rather than switch allegiance to his country of birth at a later stage.
“You can't buy or sell players and we're only a small country,” Saunders said. "If someone is eligible for us and there's a bit of potential there then he's (Coleman) done the right thing.
"He's Welsh and he's playing for us. It's good news for the squad. He's got a good attitude and nothing fazes him. Top players have that sort of attitude about them.
"He doesn't look like a rabbit in headlights when he plays for Liverpool. He's a talented player and scores goals."