However, Fergie decided to continue as manager and the then Dutch international boss returned to domestic football with Bayern Munich.
"It was before the World Cup of 2002," said Van Gaal.
"I was in contact with Manchester United through Peter Kenyon (then United's chief executive).
"It was said to me that Alex Ferguson was going to retire.
"The moment he'd go, I'd succeed him. But in the end Ferguson didn't want to quit."