Jones made the comments ahead of England's visit to Cardiff, when the two sides boasting 100 per cent records in this year's Six Nations will meet in a crunch clash.
The Australian insisted this was "the greatest Welsh side ever", but Gatland does not feel his charges are at that level.
"The only quotes I can see about this being the greatest Wales team are from Eddie Jones," Gatland said. "It hasn't come from anyone else, so I wouldn't be disrespectful enough to say this was the greatest Welsh team ever.
"It's a long way off being the greatest Welsh team ever. He's the one talking us up."
Wales would make history with a win, setting a new national record of 12 victories on the bounce, and Gatland believes home advantage could prove key, while England's decision to head across the border the day before the game may also be telling.
"The big challenge for England is five of their forward pack, it's the first time they're starting at the Principality Stadium," he said. "I think England are making a significant mistake by travelling tomorrow [Friday], coming through Newport at about five o'clock is probably not the best thing to be doing, going through the Brynglas tunnels.
"There's a good chance there could be tractors and buses holding them up. That's going to be an experience for them."
Gatland has opted for Gareth Anscombe over Dan Biggar in his starting line-up, while Gareth Davies will start at scrum-half.