Alex Ferguson believes Leicester City can make a deep run in the Champions League after their Premier League title success last season.
Claudio Ranieri's men shocked the world by winning the top-flight in 2015-16, but they already sit nine points off the pace after as many matches this time around.
In the Champions League, though, Leicester are on the brink of reaching the last 16 having taken maximum points from Group G games against Club Brugge, Porto and Copenhagen.
Ferguson does not think that will be the end of Leicester's run in Europe's elite club competition and is tipping them to reach the latter stages, although he stopped short of saying they would go all the way.
"Their transfer policy was fantastic," former Manchester United boss Ferguson told Kicker about Leicester's title success.
"They got players with a hunger for success and a will to win, not overpriced players.
"They're a good example for other clubs - in the Championship as well, where teams like Barnsley and Huddersfield come from scratch now. It is possible!
"It will be difficult for Leicester in the league, but in the Champions League, after three wins in three games, I think they are capable of making a deeper run, although not winning the trophy."
Meanwhile, Ferguson believes Tottenham - who finished third last season - are in with a strong chance of another high finish due to the presence of manager Mauricio Pochettino.
He added: "For my money Mauricio Pochettino has fantastic potential. Spurs have a good mix of youth and experience. Top players like [Harry] Kane or [Eric] Dier were injured but they're still in a good position.
"I am disappointed that there are not more English or Scottish managers [at the top level], but at the end of the day, quality is the decisive factor. The overseas owners want success and the best."