Paul Scholes tells Wayne Rooney to resist Chelsea advances
The Blues had a bid for the England striker turned down last week - but their pursuit of him is ongoing.
However, 38-year-old Scholes said: "I don't think there's anywhere better than Manchester United to play your football.
"It's up to Wayne - but he's a top, top player and every player and fan wants him to stay."
Scholes, who made his United debut in 1993 and went on to make more than 700 appearances for the club, does not believe manager David Moyes is under pressure to recruit.
The Barclays Premier League champions have made two offers to Barcelona for midfielder Cesc Fabregas, for a reported £25million and £30million respectively, both of which were rejected by the Catalan club.
Scholes, who retired from action for a second time in May, added on Sky Sports News: "I don't think there's that much pressure.
"He's got a quality squad there, with already 18-20 quality players.
"Even if Sir Alex Ferguson was there he would want to sign two or three players. That's the norm every season - to improve the year after, even if you've won the league.
"I'm sure David Moyes is trying to get players - and hopefully he'll get the ones he wants."