Wilshere is out of contract at Arsenal this summer and expected to end his 17-year association with the club.
And while the England midfielder is said to have interest from Everton, Murphy suggested to Talksport earlier he could aim as high as Manchester City when it comes to finding new employment.
"If you're talking about someone who can play in a holding role (and) attack midfield, and an Englishman who's on a free - Jack Wilshere," said the former Liverpool and England midfielder.
City, who were crowned Premier League champions with five games to spare on Sunday, are being linked with a move for Bayern Munich midfielder Thiago Alcantara - who was managed at two clubs by Blues boss Pep Guardiola.
Murphy though, does not think a player as good as Thiago - whom he described as a 'special footballer' - is necessarily required by Guardiola's side, who have, in Murphy's words, 'arguably the best (midfield) three in Europe' in Fernandinho, David Silva and Kevin de Bruyne.
"I didn't say put him in the 11," he added. "Does he start every game for Arsenal?
"What I would say about Jack - City might not fancy him, there is an argument to say they're looking at bigger and better in some respects. Thiago is a proper footballer - he's top notch. But you also have to get the balance right of the squad - not everyone knocking on the door expecting to be playing every week.
"Ultimately if you're going to play 20-25 games a season rather than 45, you're better doing that on £150,000 a week than £75,000. That's the crux of it. If you get a player of Jack's quality who's fit, where's the risk?
"If you're going to sit on the bench for two different teams, you might as well sit on one that's going to win things and pay you more."
Should Manchester City make a summer move for the Arsenal midfielder?