Baleba has struggled to make an impact at Old Trafford after an injury disrupted start to life in Manchester following his £70M summer move from Brighton & Hove Albion.
Michael Carrick brought him off the bench for 30 minutes in the 1-1 weekend Premier League draw with Tottenham as part of a solid club debut.
Stam is confident the Cameroonian can fill the gap left by Casemiro's exit in June with United in clear need of a defensive midfield enforcer.
"I really like Carlos Baleba, who has come in from Brighton. I think he can replace Casemiro.
"United need to find a replacement who is in good physical shape and has energy to cover the whole pitch. He also needs to be very good on the ball, and Baleba can do that."
Carrick could had the 22-year-old a UEFA Champions League debut tonight as the Red Devils take on Atletico Madrid.
