The Tottenham legend has advised United against against replacing Van Gaal with José Mourinho, claiming that the former Chelsea boss is only a short fix for United's problems.
Manchester have endured a traumatic post Ferguson three years in which the team have failed to qualify for the Champions League twice.
Van Gaal is under immense sack pressure, after it emerged that United will not make the top four this season with their 3-2 loss to West Ham.
Mourinho has always been the favorite to replace Van Gaal, but Glenn Hoddle thinks current Southampton manager is a better choice.
Hoddle rates the Southampton boss as his manager of the season last season, and believes he would be a good choice for United.
"They can't afford to get it wrong again. That would set them back further. They can appoint Jose Mourinho, but he seems a short-term fix. He wrote in his column for Mail on Sunday.
"Ryan Giggs might be a man for the long term but needs to cut his teeth somewhere. It would be easier to justify appointing Giggs if the club
were winning trophies.
"They missed Pep Guardiola and Carlo Ancelotti, while Mauricio Pochettino is staying put.
"Ronald Koeman would be an excellent choice but if they're not pursuing him, you can see United sticking with Van Gaal, almost by default."
The England legend gave his reasons for preferring Koeman.
"He has experience all over Europe, has won the league and cup in Holland and the Copa del Rey in Spain.
Now, with limited resources, he is punching above his weight consistently in the Premier League. He knows the games inside out and is tough enough to make big decisions. All that, on top of an extraordinary playing career. He ticks a lot of boxes."
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