Neville has taken over at Valencia until the end of the season following the resignation of Nuno Espirito Santo.
He will work alongside younger brother Phil, who had been assisting interim manager Voro in the past few days. Ferguson backed Neville to succeed at the Mestalla stadium.
“His leadership skills are strong, he’s honest and he’s hard working,” Ferguson said.
“He is the type of character who is not afraid of making big decisions, which is a vital skill when leading. I think he’ll do well and I wish him, and his brother Phil, good luck.”
Neville has garnered widespread praise for his work as a television pundit and it will be interesting to see how his tactical knowledge and understanding of the game translates to management.
Man United fans will certainly keep their eye on the situation, as a successful stint in Spain could increase calls for Neville to join the set-up at Old Trafford. Valencia, currently ninth in La Liga, face Barcelona on Saturday before taking on Lyon in the Champions League.