The 39-year-old goalkeeper has been in outstanding form this season for Rangers and pulled off one of the most astonishing saves in the dying minutes against Slavia Prague last week.
He has kept 16 clean sheets in 23 league games for Rangers this season and has conceded just seven goals in the Scottish Premiership.
Rangers are expected to offer him a new contract soon and McCoist stressed that despite his age, McGregor completely deserves to put pen to paper on fresh terms with Rangers.
He also insisted that the veteran goalkeeper is the best custodian in Scotland at the moment and sees no reason why he should not be recalled to the squad for the European Championship.
McCoist said on talkSPORT: “He is 39, but they are talking about giving him another contract.
“100 per cent he deserves it. He is the best goalkeeper in the country.
“The fact is that there is an argument that he is the best goalkeeper in Scotland so he should be playing in the Euros.”
McGregor has 42 Scotland cap beside his name but has not played for his country since 2018.
