The then 21-year-old was one of the hottest prospects in British football after a successful three-year stint with Forest.
After an extremely public contract stoush, Forest were relegated and Blackburn Rovers had agreed a fee of £4 million fee for Keane.
But as Edwards, who was at the helm from 1980 to 2002, describes, the paperwork had not yet been completed between the two clubs and knowing this, Ferguson used his magic to persuade Keane to sign for United instead.
Speaking exclusively with Tribal Football, Edwards said: "First of all, Roy spoke to Blackburn [Rovers] before he spoke to us. I don't think he knew we were interested.
"When we found out that he was available and he had had words with Kenny Dalglish, we then entered the fray and made an offer that was acceptable to Blackburn.
"So he went back on his word with Blackburn, but I don't think he actually signed the forms, so it worked out well."
Edwards is currently promoting his book, Red Glory : Manchester United and Me. It details the former Manchester United chairman's 22-year stint at the club, where he took the value of the club from £2million in 1980 to £2billion by the time he left in 2002. Edwards was also the man who hired Sir Alex Ferguson, who would win eight Premier League titles, six FA Cups and a Champions League while Edwards was at the club.