Lambert, who plied his trade at Celtic Park for eight years as a player, doubts that the proposal to integrate the two teams into the English league system will ever come to pass.
"Well that was always spoken about even when I played up there and nothing really came to fruition," he told Yahoo!
"I can understand why, with all the teams in England, the different football federations want them in. It was the same argument when I played and nothing’s really changed. I can't see it happening."
The former Scottish international does, however, believe that if the move was ever to take place, then the two Glaswegian clubs would not have any trouble adapting to their new surroundings.
"I have no doubt that if it did and the two clubs were allowed in to England they would certainly become a massive force," he said.
"The finances would be there, the fan power is there, Celtic are global and that certainly helps them."
Rangers are currently in the midst of an extreme financial downturn – something which Lambert believes is a disaster for the club.
"I think it's there for everybody to see. I think it's an absolute disaster for them, I really do. They were so far ahead of Celtic in the league before this even broke, and Celtic have done unbelievably to turn it around and are going to win it.
"I think the administration has taken a lot of deflection from that, but it's a disaster for Rangers themselves and Scottish football itself. I don't know the ins and outs of it, but from the outside looking in, something seriously went wrong there."
Lambert made 193 appearances for Celtic during his time at the club, scoring 14 goals in the process.
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