Manchester United suffered a toothless defeat at the hands of relegation-threatened Everton at Goodison Park on Saturday.
They remained seventh in the league table, but the prospect of finishing in the top four looks distant at the moment for the Red Devils.
Manchester United are hoping for a fresh start under another new manager in the summer, but McCoist stressed that there is a general malaise and a lack of spirit inside the squad and around the club.
He stressed that despite having a number of quality players, they just do not have a functional team and feels it could take years before they can compete for top honours again.
The Scotsman insisted that it just seems like the squad need a major overhaul under the new manager going forward.
McCoist said on talkSPORT: “There is just a malaise throughout the place.
“There is no spirit, no life about them. I watched the game at the weekend and it was baffling.
“You look at the players – Manchester United have got some fantastic players but they are not a good team.
“They haven’t got that blend in a team.
“Honestly, it could take a long time for Manchester United to get themselves back where they want to be because they are miles off from Liverpool and Manchester City.
“Obviously a new coach is going to come in and I just think it is going to take a complete clean sweep of the squad.
“This is going to need an overhaul.”
Manchester United have identified Erik ten Hag as their preferred managerial choice but the Dutchman is yet to give his consent.
