Madrid have long been chasing Ronaldo and Figo, who controversially left Barcelona to join their arch rivals at the Bernabeu in 2000, reckons the FIFA World Player of the Year should take his career on a new path and join the Spanish champions.
''Real Madrid are the most important club in the world, the best club in the world. I think Cristiano has completed a stage at United,'' he told Marca.
''He has won everything with the English team, which is another great club, but now he must have other objectives, other ambitions and Real Madrid would allow him to achieve those.
''Cristiano is a great player, but he would be even more at Real Madrid.''
Figo also admits both his current club Inter Milan and former employers Real Madrid have their work cut out to make it through to the quarter-finals of the Champions League.
Figo, who moved from the Spanish capital to the San Siro in 2005, concedes it is not looking good for either team this year.
On Inter's chances of getting past reigning champions United, Figo said: ''It's very difficult. Old Trafford is a not a simple place to go. We needed to have scored a goal in the first leg.
''Manchester are not the machine of last year, but they have tremendous potential.''
Madrid have an even tougher mountain to climb as they lost their home leg against Liverpool to a late Yossi Benayoun header.
However, while Figo accepts it is a tough ask for the Spanish giants, he believes it would be foolish to write them off, saying: ''To win away from home in Europe by two goals is not easy and even less so at Anfield. But if there is a team capable of doing this it is Madrid, without doubt.
''To win the Champions League is very difficult. There are six or seven very strong teams and any team can knock you out.
''Inter have not got through to the last eight for some time either. It's not as easy as you think.
''The game against Liverpool was very even and anyone could have won. Maybe Madrid do not have as much individual quality as before, but they are a team.''