The former Chelsea boss could see Ibrox as the ideal place to revive his coaching career, according to Alex Rae.
Rae, part of Philippe Clement's backroom staff at Rangers, left earlier this year when the Belgian was sacked.
He said on PLZ Soccer: "Potter, potentially if he could reignite his early managerial form when he was in Sweden and Brighton.
"He was on the upward trajectory there, then he's obviously had his tougher ones at Chelsea and West Ham."
Rae added: "He potentially could be.
"I'm not overly enthused, but we don't know the names that are putting themselves in the hat.
"You talk about success.
"If you look at a manager over four or six posts, there's going to be a couple where it goes a bit ropey.
"So if he can re-enact what he did in the early part of his tenure in Sweden and in Brighton, then out of that group, he would be the one.
"I'm saying this loosely, because I'm not sure any of these guys would even entertain Rangers because of the levels they've been managing at."
Despite a disappointing stint at Chelsea and West Ham, Potter worked wonders with Brighton in the Premier League.
Rae thinks there's potential for success with Potter and the Scottish Premiership giants.
Steven Gerrard had withdrawn from the running, leaving Danny Rohl as the latest frontrunner for the vacancy.