The Portuguese manager is set to bring his trusted associate Rui Faria as his assistant at Old Trafford and the latest reports have suggested that Giggs will end his 29-year association with the club this summer.
Yorke told 888sport: "When I look at the whole package out there my overall choice was Giggsy.
"(Zinedine) Zidane, (Jose) Enrique, Pep (Guardiola) and (Diego) Simeone and all those guys were given an opportunity at a big club and I thought there was a change of mentality with appointing managers due to players now being tuned in to what it takes.
"Giggs spent three years under two managers at Manchester United and at 42 it was a good time to hand it to him.
"The club decided against it and then when you look what is out there Mourinho was the best option after Giggsy."