The 32-year-old was let go by the Old Trafford club this week after making just four appearances in 2011-12, and Tony Pulis’ side are the bookmakers' favourite to land the former Real Madrid man.
Stoke expressed interest in Owen when he was last available for free, after he departed Newcastle three years ago, and Coates says that he wouldn’t rule out Pulis making another approach.
"Michael Owen has been a fantastic player and I can see why Tony might be interested,” he told The Sentinel.
|OWEN TO LEAVE UNITED
|Former England man has previously said he will make a decision after his holiday
The striker made just 31 appearances during three years in Manchester as he struggled with injury and competition with the likes of Wayne Rooney, Dimitar Berbatov and Danny Welbeck.
Stoke already boast several former England internationals in their ranks, including ex-Tottenham and Liverpool man Peter Crouch as well as defender Jonathan Woodgate.
Owen is based in the North West, and has ruled out dropping down the leagues, leaving the Staffordshire side as one of few in the area that meet his needs.
“The Championship is not an option. I'd like to think I haven't lost the ability to score goals at the highest level,” the forward declared earlier.