Owen joined United on a free transfer on Friday after his contract with Newcastle expired at the end of last season.
“The way United play will suit Michael down to the ground,” Hoddle told the Sunday Mirror.
“Possession football and a lot of chances. It couldn’t be better for him.
“At United, he won’t be the focal point of the team. He will have the likes of Rooney, Berbatov and Valencia around him. They are match-winners as well. He will thrive at United.”
“It is a superb bit of business by Sir Alex Ferguson. I’m convinced it could be the shrewdest signing of the summer,” he added.
“If Michael can stay relatively fit and be involved in 30 or so games, he can be better for United in front of goal than Tevez.”