The Liverpool legend doesn't believe that the Ajax playmaker is good enough for one of the continent's big guns yet and advised him to remain in Netherlands for the time being
Having attracted the attention of a number of suitors for his performances in the Eredivisie last term, Eriksen has been tipped to make a move to England after Euro 2012, something which Molby feels would be a mistake at this crucial stage of his career.
"There is a lot of hype about Christian and there is certainly a lot of potential there as well,” said Molby.
“All the top clubs have been looking at him because he has clearly got all the ingredients to one day become a top, top player.
"But Eriksen is nowhere near being the finished article. In my opinion, I don’t think he is anywhere near ready to move to one of the elite European clubs.
“My advice to him would be to continue his development at Ajax for another year. There are few better places for a young player to educate himself about the game than Ajax.
“If he can continue to improve next season, then even then I would say that he would only be ready for a club that regularly qualifies for the Champions League rather than one of the so-called giants of the game.”
Eriksen has disappointed at Euro 2012 so far for Denmark and Molby believes that a big-money move, as well as comparisons to new Swansea boss Michael Laudrup, would only heap even more pressure onto the 20 year-old's shoulders.
"You have to know how to find space, you have to be creative, because if you don’t perform then your team doesn’t perform as an attacking force.
“I wouldn’t like to see Eriksen go to a club for big money and then suddenly find himself under pressure and fighting for his place in the team.
“He doesn’t need that at this stage of his career. He needs to be at a club that will understand him and nurture him.
“He needs to play under a coach who will be patient with him, who understands that at his age and in his position there will be inconsistencies.
“It has been hard for him to be compared to Michael Laudrup, who is one of the game’s true greats.
“For me, comparing Christian to Michael, even as 20 year olds, is like comparing night to day.”