Shilton told the Daily Star: "It needed to happen for Michael - and it could be a major boost for England. It should be just the incentive he needs, playing for United.
"If he's ever to return to form, this is the time. He may have lost a yard of pace, but he's still got a goalscorer's instinct. His record speaks for itself.
"If he can be playing regularly and get his confidence back, I think it's going to be a massive plus for England.
"He's not old and he plays in an area where we are still experimenting. Owen still gives you options, and it's not so long ago he was scoring goals for England.
"He hasn't lost his ambition and he wants to get back in the big time and back into the England team. I'm sure that's why he's gone there.
"I would be confident he can get himself back to something like his best. I think that would be good enough for England."