The Welshman has taken charge of first-team affairs until the end of the season in the wake of David Moyes' sacking, and his former manager believes he is a good choice.
Giggs, 40, was put in charge of first-team affairs at Old Trafford on Tuesday in the wake of David Moyes' sacking, and will make his managerial debut against Norwich City on Saturday.
The Welshman is not believed to be in the running to fill the vacancy on a permanent basis, with Real Madrid coach Carlo Ancelotti and Netherlands manager Louis van Gaal believed to be the preferred candidates. Van Gaal, who will leave his post after this summer's World Cup, has reportedly agreed to terms already.
But Ferguson believes Giggs has all the attributes to become United's full-time manager.
"I think that he [Giggs] is the one man they should go to, really," Ferguson was quoted as saying at a fundraising dinner in Manchester this week. "He's got 20-odd years of experience at Manchester United. I signed him as a kid at 13 years of age. He's gone through the gamut of emotions at the club – he's experienced all the highs and lows.
"He knows exactly what's needed to be a Manchester United player and I was so pleased he brought Paul Scholes back in [to his staff], and Nicky Butt of course – two great professionals. They understand the club, they are hard workers, they are straight as a die. So you have got the right combinations there, there's no doubt about that."
Ferguson also insists good succession planning is still possible at United despite the failure of Moyes to live up to his predecessor's phenomenal level of success.
"One of the things we have been criticized about over the years is succession planning," he said. "It's a very difficult industry to say you can have succession planning, but in the case of what we were doing in the last few years, with bringing Nicky Butt into the fold, Ryan into the fold, Paul Scholes into the fold, and Gary Neville was offered a position but he decided to go into television. He could easily come back."