The Welshman claims he has watched the Barcelona midfielder in several games but is unsure whether the 22-year-old will be arriving at Old Trafford this summer
Goal revealed in May that the 22-year-old is one of David Moyes' transfer targets this summer, while United goalkeeper David de Gea has admitted he would love his fellow Spaniard to join him in the Premier League.
"I've seen him in several games," Giggs told Marca.
"He's a good player. But there's always a lot of speculation with United and good players. We'll see if it happens in the end, but he's a big talent."
Giggs went on to praise Spain's dominant national side, and believes their Under-21s triumph over Italy in the European Championship this month demonstrates that the country's run at the top could be extended for a number of years.
"The Spain team is full of great players like Fabregas, Iniesta and Xavi," he continued. "They're great when they have the ball at their feet.
"They've been a top team for the last six or seven years. Then the Under-21s are the ones who will come next. There is quality at every level and I think the success will continue for a long time."
Giggs has now been at Old Trafford for 26 years and, as he approaches 40, is now contemplating his future after he retires.
"A mixture of things [help prolong your career]," the 39-year-old added. "Firstly hard work, then being managed by a great manager for such a long time and then being surrounded by good players. You also have to look after your body and be mentally strong. You have to be motivated.
"Yes, [the end of my career] is very close. I still haven't decided what I want to do when I retire. Coach, manage the youngsters, become a manager - who knows. I want to be better prepared. I will decide in two or three years, when I'm ready."