Iwobi made his debut for Arsenal senior team in October 2015 and has impressed ever since.
This season, the Nigeria international has displayed several Man of the Match performances for Arsenal who are joint top of the Premier League table.
The 20-year-old has impressed former Manchester United manager, Ferguson.
“I'm impressed with the young boy Alex Iwobi,” Ferguson said in an interview with German magazine, .
Ferguson also believes Arsenal have what it takes to challenge for the Premier League.
“You shouldn't forget Arsenal. The team is more sturdy. They've got better and more aggressive,” the 74-year-old added.
Arsenal make a short trip to visit Sunderland on Saturday, October 29 early kick-off.