The Liverpool striker was strongly linked with a move to Real Madrid over the summer.
Arsenal had a £40million plus £1 bid for Suarez rejected and Cavani insists that the striker was not keen on joining the Gunners.
Cavani said: "It is no surprise to me at all that Luis has come back for Liverpool and is scoring goals right away.
"He is the most complete striker in England - and one of the most complete strikers in the world. Ability and confidence is no issue for him, he will score a lot of goals this season I am sure.
"I am sure Liverpool fans are very happy Luis stayed - he will be a big player for them. I think Arsenal was not Luis's dream move, maybe if it had been Real Madrid then it would have been a different outcome - but of course Madrid were concentrating on a different target this summer.
"It is his dream club - and a club he thinks is worth waiting for."