The Germany international moved from Real Madrid to Arsenal in August and has proved to be an instant success at the Emirates, helping the Gunners to the top of the Premier League table.
Ozil had also been linked with a move to the Red Devils prior to the deal going through, but Moyes insisted the club were never close to bringing him to Old Trafford.
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“We didn’t need that position at the time. I didn’t even say it was an interest, it was put to us and it was just something at the time we didn’t need.
“We had Shinji Kagawa and Wayne Rooney and people of a similar ilk so it wasn’t quite what we required at that time. We were looking at different positions.”
Moyes will face Ozil and Arsenal at Old Trafford on Sunday and the Scot is confident his side are facing the in-form Gunners at the right time, after an inconsistent start to the season.
“Arsenal are coming to play the champions, but I think their form is very good and they will come in good spirit,” he added.
“But we have some good momentum. Our performances are improving, there are signs we are coming into a bit of form, so hopefully it will make for a good game.”