The former Middlesbrough midfielder has returned to Rangers on trial, as reported by The Daily Record.
Halliday was in the Rangers youth academy from 2003 to 2006, and he now has a chance to play first-team football for the Gers.
Former Rangers midfielder Ferguson worked with the 23-year-old at Blackpool in 2014, when the former was the club’s caretaker manager and the latter was on loan from Middlesbrough.
The former Scotland international is happy see Halliday return to Rangers - at least on trial - and he seems confident that he will get a contract at the Scottish giants.
“I had him on the right and the left but I played him at left-back for the final five games of the season and he was my best player,” Ferguson wrote in The Daily Record.
“He’s a lovely guy and great about the dressing room but the bottom line is he has bags of ability.
“I’m surprised no one wanted to keep him in England. When I saw he was going to Rangers on trial I thought it was a no-brainer – he’d be a great signing.”
However, Ferguson has highlighted one aspect of Halliday’s character which he does not seem to be a huge fan of.
“I had him at Blackpool for three months and he was different class,” wrote the 37-year-old.
“I couldn’t fault him but if there’s one thing I would say then he’s maybe too nice if there is such a thing.
“He worked his backside off for me and I think he’d be a perfect fit, the fans would love him as he’s a huge supporter of the club himself.”
The fact that Rangers have given Halliday a trial suggests that they do see potential in him.
It is now up to the Scotsman to show that he is ready to step up and earn a contract with the Gers.