"I don't think I have lost the ability to score goals or play at a high level," Owen, who has endured a frustrating three years at United because of injury, told Sky Sports television on Thursday.
"I certainly feel as if I can still play at the top level so we will wait to see where that is. If it's not in the Premier League it may be further afield.
"I don't think the Championship would be an option, to be totally honest."
The 32-year-old former Liverpool, Real Madrid and Newcastle United striker, who last played in a competitive Manchester United game in November, had said earlier on Thursday that United were letting him go.
"The manager informed me after our testimonial match on Tuesday that the club would not be offering me a new contract," he wrote on his Twitter feed.
"I have loved every minute of the three years I have spent at such a fantastic club," added Owen, who was named European Footballer of the Year in 2001.
Owen signed from Newcastle on a free transfer in 2009 and went on to score 17 goals in 52 appearances, winning the 2011 Premier League title - his first English championship medal.
His most notable United strike was an injury-time winner in the Manchester derby three years ago but City got the upper hand this term as they pipped their rivals to the title.
