Ferguson was the assistant manager to Carlo Ancelotti and Rafael Benitez at Goodison Park and is in charge of training this week at the club.
Everton are looking to appoint a new manager before their clash against Aston Villa on Saturday and Roberto Martinez has emerged as their top target.
The former striker is expected to remain in interim charge until a new manager arrives but Allardyce believes he is now ready to take the job full-time at Goodison Park.
He believes Ferguson has learned enough from different managers and it all depends on how he can handle the pressure of being the full-time boss at Everton.
Allardyce stressed that the time is right for him to get the role and believes he is the kind of dyed in wool Everton man that the club need at the moment.
The former Premier League manager said on talkSPORT: “Oh, absolutely [Ferguson has the potential to take the job full time].
“He has seen so many managers come through the door since [David] Moyes. He has learned from all those managers.
“The only question is can he handle the pressure?
“Caretaker is fine but then if it’s full time you have got to be able to cope with that pressure.
“And I think his decisions to employ the people to help him along the way if he gets the job full time, which I think he deserves, will be crucial to him and his future.
“I think it’s Duncan’s time and he is ready and if I can help him in any shape or form, I’d do that because I think he is a fantastic guy.
“And he is Everton through and through and that’s what the club need at the moment.”
Ferguson is unlikely to get the job as Farhad Moshiri may push to bring in someone experienced amidst the crisis at Goodison Park.