Having handed in a transfer request at the end of last season, the England international has been strongly linked with a move away from the Premier League champions, with both Arsenal and Chelsea supposedly keen on the 27-year-old.
"I don't think it's a case that it's his last chance for a big move, you don't get anywhere bigger than Manchester United," Owen told talkSPORT. "It's more a case of, is he wanted, is he loved, is he appreciated? He wants to be the top man, the main goalscorer, and I think that's what it all boils down to.
"I think one thing that may have knocked him off his stride a bit last season was Robin van Persie coming in and becoming the main man. If you're the striker in a team for so long you like having that pressure it puts you under, and when someone comes in and gets picked ahead of you on certain occasions, it knocks your confidence a bit and consequently he's not feeling on top of the world.
"He wants to be scoring goals on a regular basis for Manchester United. If that's going to happen then he'll be more than happy to stay."
Rooney has also been linked with moves to Bayern Munich and Real Madrid.