The legendary talk-show host died on Sunday, aged 88, following a long illness, and Sally has now claimed that he helped to change the landscape of the TV industry.
The 89-year-old star - who hosted 'Sally' for almost two decades - told PEOPLE: "[Phil] is known for being the inventor of the talk show.
"He invented the whole idea of talk shows. I came next, then came Ricki Lake, then came Oprah [Winfrey], then came Jerry Springer, then came Maury Povich, then came Geraldo Rivera, then came - well, a whole lot. We were all born of Phil Donahue."
Sally also hailed Donahue for having the courage to tackle "taboo" issues.
She said: "He's the only one who did [cover] all those topics. Homosexuality, religion, abortion ... He did them in the 60s. No one had ever done that before."
Sally previously took to social media to pay tribute to Donahue.
She wrote on X: "This is a very sad day. I admired Phil Donahue for so many reasons, and he was one of the finest broadcasters in American television. If there wasn't a Phil, there would have never been a Sally. My thoughts and prayers go out to Marlo and their family. #RIP #Legend #talkshows (sic)"
Meanwhile, Oprah has admitted that she owes her career to the TV icon.
The 70-year-old star - who hosted 'The Oprah Winfrey Show' for 25 years - paid a glowing tribute to Donahue, admitting that he was a trailblazer in the TV industry.
Oprah told PEOPLE: "There wouldn't have been an 'Oprah Show' without Phil Donahue being the first to prove that daytime talk and women watching should be taken seriously.
"He was a pioneer. I'm glad I got to thank him for it."