The 40-year-old is poised to preside over United's last four Premier League games of the season after replacing David Moyes on an interim basis earlier this week.
Having been a part of the club for some 27 years, though, Ferguson believes that the Welshman - along with assistants Paul Scholes and Nicky Butt - is an ideal candidate to take the reins in the long-term.
"I think that [Giggs] is the one man they should go to, really," the legendary Scot told The Telegraph. "He's got 20-odd years of experience at Manchester United.
"I signed him as a kid at 13 years of age. 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."
Giggs kicks off his caretaker role by welcoming Norwich City to Old Trafford at 5.30pm this evening.