"His leadership skills are strong, he's honest and he's hard working," Ferguson told Sky Sports on Wednesday.
"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 (Neville), good luck."
Neville's assistant will be his younger brother Phil, another former United player who joined Valencia as a coach in the close season.
Gary Neville is the 29th player who featured under Ferguson at Old Trafford to take the top job at a professional club, either on a permanent or temporary basis, United said.
(This story was refiled to fix a typo in the headline)
(Reporting by Shravanth Vijayakumar in Bengaluru. Editing by Patrick Johnston)
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