Gerrard’s side have travelled to Sweden to take on Malmo in the first leg of their Champions League third-round qualifier this evening.
Rangers started their league campaign with a win over Livingston over the weekend, but Malmo are well into their season and have already played 14 games.
Ferguson stressed that it is going to be a tough challenge for Rangers as Malmo have more than decent players in their squad this season.
He insisted that Malmo will also have a leg up in terms of fitness over Rangers because they have already played many games this season while the Gers are just starting out.
The Rangers legend said on the Go Radio Football Show: “[Malmo are going to be] very tough.
“They have got some decent players, I think you will hear the manager Steven Gerrard speak about that.
“They have got some standout players and plus they are 14 games into their season.
“Getting games is so important so they will be ahead of Rangers in terms of fitness.”
Gerrard believes that reaching the Champions League group stage would be a massive achievement for his side this season.