Ferdinand heavily praised the young Englishman after his excellent performance against Paris Saint-Germain in the Champions League semi final second leg.
City won the game 2-0 in Manchester, and are now through to the final after a 4-1 win on aggregate.
Foden, who is only 20, was instrumental in both legs, and Ferdinand believes he is the best young player in the world.
"At the moment I would say Phil Foden is the best young player in the world right now on form," Ferdinand said from the BT Sport studio after the game.
"[Erling] Haaland is yet to play at this level. In terms of this moment, Foden is the best on form."
Ex-City and England keeper Joe Hart agreed, adding:
"Look at his [Foden's] freedom.
"His name is Phil, he's 20 from Stockport and he's lighting it up!
"It's so important for Man City to have a player doing that."