"Simon's done a fantastic job," Ferguson said in the Yorkshire Evening Post.
"He's a Leeds boy himself and a former player. Some people have targets in life and I think he reached his target by managing Leeds. Simon's done a fantastic job.
"He's got great motivation and his team aren't letting him down. They're playing really well at the moment.
"They won't be too far away from the Premier Division in the next couple of years. With the position they're in it looks as if they're absolute certainties to be in the Championship next year, and the motivation and drive that's coming from their manager at the moment will give them a great chance of being in the Premier League.
"He's got great motivation and his team aren't letting him down. They're playing really well at the moment."