Ferguson recalls watching Lennon on television in the aftermath of Celtic's humiliating Active Nation Scottish Cup semi-final defeat by Ross County and his handling of the crisis convinced him that he was the man for the Celtic hotseat.
"We were having lunch at the training ground on the Monday after Celtic had lost to Ross County," Ferguson recalled to The Herald. "I was sitting with some of the Irish lads at Birmingham - Stephen Carr, Keith Fahey, who are big Celtic fans - and also James McFadden.
"Neil came on and was responding to questions about the cup result. He was giving it to them straight: 'not good enough'; 'won't have futures at the club with results like that'. He didn't miss anyone.
"We all sat there listening and the lads were like 'he has to be the next manager'. I don't see anyone else mentioned who is better equipped for it, and I have gone on record before to say that.
"He is the right man for the job because he is a winner; you need that at the Old Firm. He knows what it takes. I don't think he'll be intimidated by taking Walter on, even though he knows it's a big task to get the better of such an experienced man. Likewise, Walter will know what drives Neil on. It promises to be a fascinating battle if Neil is appointed."