United were among those to note his potential, with Giggs deployed on scouting missions during his time working as Louis van Gaal’s assistant at Old Trafford.
Sanches would ultimately make a move to Germany in a deal that could be worth as much as €80 million, but has ended up in the Premier League this summer on loan at Swansea and Giggs believes he is capable of making a positive impact in the English top-flight.
The United legend told WalesOnline: “I was watching him for United a few years ago and I was impressed – I thought he was a really talented player.
“He showed it then and he showed it in the Euros. It didn’t quite happen for him last year for Bayern, which can happen; a young player moving country, different language, a big club and a lot of expectation, but he is a talent and the Premier League will suit him because he’s an aggressive player.
“He can tackle, he can get forward and he’s going to a club that play football the right way so I think he’ll be a success.”
Sanches struggled to make an impact at Bayern during his debut campaign in 2016-17, with Carlo Ancelotti restricting him to 25 appearances in all competitions.
The Euro 2016 winner is, however, still only 20 years of age and Giggs is confident a player he considers to be “a gem” will get his career back on track after making a shock switch to the Liberty Stadium.
He added, ahead of a potential debut for the youngster against Newcastle on Sunday: “I remember looking at him and instantly liking him. Liked the way he played and thought he would suit Premier League football.
“Swansea have done well to sign him – Paul Clement’s ties to Bayern and friendship with Carlo Ancelotti has got a lot to do with it, but that's when you've got to capitalise on stuff like that.
“He's a fantastic player and I think he will be one of the exciting players in the league. It obviously depends on how Swansea do but he is a really good player.
“Germany isn’t that physical so I think the Premier League will suit him because he's physically strong, quick, aggressive, passes forward and I liked him instantly. Swansea have got a bit of a gem.”
Sanches did not manage a single goal or assist for Bayern last season, but will be hoping to make an immediate impact with the Swans if thrown straight into action by Clement.