The former Rangers and Scotland midfielder had a spell as caretaker boss of Blackpool in the second of half of the 2013/14 season, winning just three games out of 20.
He pitched up at Broadwood in June of 2014, and took charge of 118 games, winning 46, drawing 22 and losing 50.
Ferguson quit the role in February and hasn’t had a job in management since, but the 40-year-old is understood to have held talks with the New Central Park side with a view to succeeding Thomas Courts as manager.
Kelty have identified Ferguson as their number one target, after Courts departed after five years in charge.
Further talks are expected to take place early this week as the Fife side look to thrash out a deal for the ex-Ibrox star.