On Monday League Managers' Association chief executive Richard Bevan warned that the numerous foreign-based owners of England's top flight clubs wanted to guarantee membership of the elite league by scrapping relegation.
However, the Premier League's most successful manager slammed talk of a move that would effectively undermine the bedrock of English league football since it began in the 1880s.
"If you look at the Championship at the moment, we have eight teams with tradition and history," Ferguson was quotes in British media on Tuesday.
"What do you say to those eight teams? That they can never play in the premier division. I think that would be absolute suicide for the rest of the league and particularly the teams in the Championship.
"You might as well lock the doors. The only place you can make money and realise your ambitions is in the Premier League and you can't take that away from clubs like Nottingham Forest, Leeds United, Sheffield United and Sheffield Wednesday.
"All these great teams, who formed the nucleus of our old First Division all those years ago. It would be unwise."
"The FA's share can be used so it has to approve any major rule change. This covers changes to promotion and relegation," an FA spokesman said on Tuesday.
The FA objected in 2008 when the Premier League discussed a plan to play a match abroad with a "39th game."
Last week Liverpool's managing director Ian Ayre was widely criticised for suggesting that Liverpool, owned by American John W. Henry's New England Sports Ventures, could raise more overseas television revenue if it broke away from the collective marketing stance of the Premier League.
