James recently ended a two-year stint at Old Trafford by making a £25m move to Marcelo Bielsa’s side on transfer deadline day.
The 23-year-old joined Manchester United from Swansea City in the summer of 2019 for £15m and made 74 appearances for the club, scoring nine goals.
Despite starting two of Man United’s three Premier League games this season, James’ first team spot was under threat following the signings of Cristiano Ronaldo and Jadon Sancho, and the return of Jesse Lingard from a successful loan spell at West Ham United.
Ferdinand believes James will benefit from his move to Elland Road, where his qualities will be better suited.
"They’ve been on him for ages, they’ve wanted this boy for time,” Ferdinand said on his FIVE YouTube channel about James’ move to Leeds.
"Listen, Dan James, I don’t think he’s Man Utd standard, but he’s definitely Premier League standard and the way Leeds play, he’s going to be a problem for a few teams.
"The kid in that team will be getting the ball and getting forward quick, and that suits his game.
"When you have to break down two banks of four like Man Utd that doesn’t suit James’ game, he likes space. Leeds United for Dan James will be a fantastic move for both parties."
