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Sancho, 21, enjoyed a superb season for Borussia Dortmund as he scored 16 times and registered 20 assists in 38 appearances across all competitions.
The Dortmund star was heavily linked with United last summer, but the German club remained firm on their whopping £100m price tag for Sancho.
The Red Devils have once again been linked with Sancho and recently had a £67m bid turned down by Dortmund.
Dortmund are now holding out for a £77.5m fee for the United target, which would include an additional £4.25m through add-ons.
Sancho was named in Gareth Southgate's 26-man England squad for Euro 2020, but he did not feature in the Three Lions' 1-0 win over Croatia at Wembley on Sunday.
However, Ferguson believes that the Dortmund winger will be "valuable to England over the course of the tournament."
The 79-year-old Scotsman added that Sancho has "so much potential" and he is an "extremely dangerous" attacker.
Ferguson told Sport Bild (via Sport Witness): "I think a lot of Jadon Sancho. With his one-on-one duels, as an assister and scorer, he is extremely dangerous.
"He has so much potential, he helps the team. That's why he'll be valuable to England over the course of the tournament."
Sancho recently swerved speculation surrounding his club future after Dortmund rejected United's bid.
When asked about the speculation linking him to Old Trafford, the England international told talkSPORT: "I don't really look at it.
"When I'm during the season I always focus on myself and the team because that's the most important thing that we can do.
"When I'm on the pitch, I'm always giving my all and trying to create what I do on the pitch, that's goals and assists. I try to work hard."
Featured Image Credit: PA
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