However, the 47-year-old, who made 73 appearances for Wales added: "Personally, I'd like to have seen him at Liverpool but they haven't lost their best strikers."
Owen's Newcastle contract lapsed on Wednesday but although the former Liverpool and Real Madrid striker apparently remained eager to stay in the Premier League, it appeared only Stoke and Hull were ready to make a concrete offer.
But this week, they were joined by United, who have lost star man Cristiano Ronaldo and Argentina striker Carlos Tevez since the end of last season.
Ronaldo was whisked off to Real Madrid in a world record £80million deal while United were unable to seal a deal for on-loan Tevez.
Owen suffered from a series of injury problems at St James' Park where he scored 30 goals in 79 games, and United boss Sir Alex Ferguson was thought to be lining up a pay-as-you-play deal for the forward.
Opinion is bound to be divided among the Old Trafford fans, who still see him as a Liverpool hero.
United have not signed a player with any Anfield links in living memory and even though he is rated by Ferguson that is not the case with England coach Fabio Capello.
The Italian believes Owen has neither the form nor fitness to add to his 89 caps and 40 international goals.
But after Owen's management company Wasserman Media Group had sent out a 34-page brochure highlighting their client's positive attributes — which include scoring 158 times in 297 goals for Liverpool — Owen appears to have been given the chance to forge a partnership with Wayne Rooney.
