Sherwood revealed he was interested in taking Delph to Tottenham before Daniel Levy wielded the axe after the London club finished sixth at the end of the 2013-14 Premier League season.
Almost a year on and Sherwood is back in management as a replacement for Paul Lambert and working with Delph, who signed a contract extension in January.
"He's the sort of character I need when you're struggling towards the bottom of the division and he's willing to put pen to paper on a new deal. He will do for me!" Sherwood said ahead of Saturday's hosting of Swansea City.
"He was certainly on my list. I remember bumping into his agent in London, telling him I'd like to take him to Tottenham if I was still there.
"Obviously that wasn't to be and Fabian decided to sign here, so in the end I did get to manage him."
Sherwood added: "I tried my best with Fabian. I really tried my best.
"I think there was a place for him there where he could have slotted in either side of Ryan Mason and Nabil Benteleb. He'd cost too much money now, but he would have been a bargain then.
"I told his agent that if I was still in charge, I'd definitely want him to come. Is that tapping up?!
"He's got more to show. When he goes past someone, he goes past them like they are not there.
"He's got a change of pace and a hammer of a left foot. He's so eager to do well that he almost runs past three people to close someone down."
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