The former Marseille star feels his ex-France team-mate will be the perfect manager for the Ligue 1 champions due to his past experience of managing big sides and the national team
With Carlo Ancelotti set to leave his post as head coach of the Ligue 1 champions, Dugarry insists his former team-mate would be the perfect man for the job.
"I am biased because 'Lolo' is my friend, but honestly this would be a great thing for PSG," he told Le Parisien.
"As a player he played for some huge clubs and has coached some big sides too. This is frankly the best scenario; a big French team being coached by a Frenchman."
When asked whether Blanc would be able to deal with the egos within the club, Dugarry said: "The likes of Thiago Silva and Zlatan Ibrahimovic know it's important to respect the coach.
"Laurent will not have a problem with them.
"PSG is not a club rotten by ego. Other clubs are, but not them."
Finally, Dugarry spoke about what style he expects PSG to adopt under Blanc, assuming he does take charge this summer.
"It might be a bit early to say, but I think it will turn out nicely. When he was in charge of Bordeaux, it was magical," he continued.
"This was down to the way he talks to the players, motivates them and instills confidence."
Blanc, 47, is currently without a club but has coached at France and Bordeaux, respectively.