Michael branded the late star "one of the greatest singer-songwriters of all time" following her death at her Camden home on Saturday.
"Amy was, in my opinion, the most soulful vocalist this country has ever seen," he said on Twitter.
"And her album Back to Black was the best album I had heard since the '70s. No question."
Michael added: "It's a tragedy on two levels. Most important of course, the waste of such a young life and the pain of those who knew and loved her... But it's also a tragedy for all of us that we won't be hearing the exquisite music that she would have given us if fate had spared her life."
The 48-year-old then urged Winehouse's record label to re-release her hit 'Love Is A Losing Game' as a tribute to her memory.
"It's the way she should be remembered," he said. "As one of the greatest singer-songwriters of all time. I hope she is at peace now.... And I send my love to her family."
Michael is one of several musicians who have paid their respects to Winehouse, with Annie Lennox saying that she "had a massive gift" and Tony Bennett comparing her to the great soul singers of the past.
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Watch Amy Winehouse perform 'Love Is A Losing Game' live below: