Murray lost to Djokovic in the final of the Australian Open last month and looked to be on track to push all the way for the title but succumbed to pressure losing in four sets, with Djokovic claiming 12 of the last 13 games against an increasingly frustrated opponent.
"He's a tortured perfectionist," said Agassi, the eight-time Grand Slam champion .
"It would help Andy if he came to terms with what could keep him at his highest level mentally.
"I don't think it's true he doesn't have a fighting spirit – that guy is his own highest critic, he holds himself to a standard you wouldn't dare hold him to.
"When I look at him I don't see someone who isn't a fighter but I do see someone who has to put his circumstances in context and figure out how to constantly get back to the job in hand.
"That's tougher for some players than others."
Agassi says he empathises with Murray's state of mind too.
"I see myself in Andy, I'm not sure for the same reasons, but I can identify with how he appears a lot of the time," Agassi said.
"It's a living hell being a perfectionist but does it make you better? It can be a strength because everything is going to get done with the highest degree of standard.
"But everyone's strength is their weakness too because it can also be demoralising, you don't accept less and you can be at your worst.
Murray has won two Grand Slams, the US Open in 2012 and Wimbledon in 2013.
"I do see him winning a slam this year," Agassi added.
"I think Djokovic is a clear level above the field at the moment but a lot can happen, you have to lace your boots up seven times to win a slam.
"I would put Djokovic as the clear dominant player this year but no doubt Andy can beat him, even when he's at his best, Andy is that good."