The United old boy has told Ferguson to make a shock bid to bring the highly rated winger to Old Trafford in a move that would certainly ruffle the feathers of arch rivals Liverpool FC.
The 18-year-old has flourished under new manager Brendan Rodgers and has become a regular in the team, featuring in every Premier League game so far this season apart from the defeat to West Brom on the opening weekend.
Morgan who made 236 appearances for United between 1968 and 1975 told the Manchester Evening News: “Sterling is the first winger I have seen in a long time who looks like a proper winger. He looks very good already and I think he is going to be great.
“If you just let him go wide on the outside of the full-backs all the time I think he will be a great player. He’ll frighten people to death, so long as nobody coaches it out of him. He’s the brightest prospect out there and would suit United.”
Sterling’s form this season has also caught the eye of England chief Roy Hodgson who awarded him his first senior cap in the friendly defeat to Sweden last month.
A deal would seem unlikely though, as no player has moved straight from Liverpool to Manchester United or vice versa since Phil Chisnall made the switch from Old Trafford to Anfield in 1964.