The treble-winning Dutchman believes new boss David Moyes is set to inherit a talented group of central defenders that are the envy of the continent's top clubs
Stam marshalled the United backline from 1998 to 2001, winning three Premier League titles and the Champions League in 1999.
And the former PSV, Lazio, Milan and Ajax defender has heaped praise on the current crop of United defenders.
“Nowadays, a lot of people ask who is the best defender in Europe,” he told the club's official website.
“It's very hard to name one but I think, if you look at United's group of central defenders, they have got a good mixture between old and young.
“They are quality players and there are not many teams in Europe who have got the choice that United have got in that position.”
Stam was also keen to dispel stories that suggested he worked for the Red Devils as a scout after his retirement.
The Dutchman was reported to be working for Sir Alex Ferguson in the club’s South American scouting operation, but he has now moved to set the record straight.
“It was probably when I was in Brazil as I met some people working in England as well as working as scouts for Chelsea,” he added.
“Everybody thought, when I was in Brazil, that obviously I was scouting for United and that's always how it goes but I have to say it wasn't the case.”