Ferguson says O'Neill will not be happy with the way his side have fallen away in the past few weeks because he is a winner - but believes Villa will make big strides in the coming seasons.
He said: "Martin has seen his high hopes of a spot in next season's Champions League slip back a little. He won't be happy with that because he is a winner - it's the nature of the man.
"But no matter how the season ends for them, he had done a fantastic job at Villa.
"He launched a rebuilding programme when he first arrived and there is a lot of youth in his squad.
"He is as close as anyone to breaking into the top four and they will get better. He has a team for the future."
Source: Aston Villa media
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