Giggs, 40, was given the interim role in charge at the Premier League giants after David Moyes' sacking on Tuesday.
Ferguson backed the hiring of Moyes, who lasted just 10 months into a six-year contract after United's struggles this season.
But the Scot 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 said good succession planning was still possible at Manchester United despite the failure of Moyes.
"One of the things we have been criticised 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 (Neville) could easily come back."
