"The worst thing ever to happen was Rangers getting demoted,” said the former Aston Villa manager. “It took the competition away and made Scottish football a mockery.
"Scottish football is suffering without Rangers playing against Celtic. I'll guarantee if Rangers came up, you'd get a lot better standard of player coming to this country to play."
Rangers are playing in the Scottish Championship at the moment, but they are on course to gaining promotion to the Scottish Premiership at the end of the season.
The Gers are currently five points clear at the top of the league table and have been the best team in the division so far this season.
The Glasgow outfit have the best squad in the Scottish Championship, and it will be a surprise if they slip up.
Celtic are set to win the Scottish Premiership yet again this campaign, and perhaps Rangers returning to the top flight will pose a challenge to them next season.
Rangers are one of the two biggest clubs in Scotland, and their presence in the Premiership is certainly going to be good for Scottish football.