The offer came early in 1986 and Ferguson was keen to take Walter Smith to the Gunners with him.
Ferguson said: "I was offered the Arsenal job and I wanted to take Walter with me.
"I thought I would sound him out when we were on Scotland duty together. We were going to play in Israel and I didn't know that Walter was going to Rangers at that time.
"I told him that I had been offered the chance to go to Arsenal and I asked him what he thought. He was positive about it, saying they were a big club and that kind of thing.
"So I said to him 'Do you fancy coming with me?' Then he dropped the bombshell that he was going to Rangers.