Keegan had a tumultuous 18 month spell as England coach.
"If the next England manager has got to be English, there's only one choice - Harry Redknapp," he told the Mirror. "Who else is there?
"That's not being disrespectful to Harry, but he's the only one with the experience and charisma, unless you want to follow Chelsea's lead and take a major risk on somebody who's 33 or 34.
"If you gave me a blank cheque, and a licence to go out and find the best man for the job anywhere on the planet outside England, my choice would be Guus Hiddink.
"He has been successful all over the world, from Holland to South Korea and Australia, as a national team coach. And he has this knack of getting the best out of his players.
"They loved him at Chelsea when he was brought in for the last three months of the season and they won the FA Cup, and he speaks excellent English so he would have no problem getting his message across.
"There wasn't much at the last World Cup to make you approach Euro 2012 oozing with confidence about England's chances, but you never know - Fabio Capello might go out with a bang.
"It wouldn't surprise me if that happened. Those players are a lot better than the performances they served up in South Africa."