Claudio Ranieri's Foxes have been this season's surprise package and are currently two points clear at the top of the table.

Despite their excellent form, Ranieri and his players have insisted reaching 40 points remains their priority, even though they already have 32 of them.

But Ferguson thinks they should be setting their sights much higher and the former Manchester United manager believes they can challenge for the league, provided they make a few additions in January.