United are expected to make a move to sign a new striker in January due to the injury to Benjamin Sesko, who is sidelined until 2027 because of a shin problem.
Balogun, meanwhile, impressed for the United States at the World Cup withthree goals in four appearances and has scored 31 goals in 95 games for Monaco.
The former Arsenal striker came close to joining Everton after a £40 million fee was agreed with Monaco in the summer window, however, the deal collapsed on deadline day after concerns were raised during his medical.
Monaco are looking to sell Balogun in January and this week United have been linked with a move for the 25-year-old.
However, former Watford striker Deeney believes Balogun should look elsewhere in the next transfer window.
Folarin Balogun impressed for the United States at the World Cup in the summer (Getty)
‘No, no, no, not good for Man United, not good for Flo Balogun himself,’ Deeney told CBS Sports.
‘It just doesn’t work. Man United haven’t given you a record in the last decade of a striker who has gone in and done well. They don’t give you the support mechanism for that.
‘I actually thought the move to Everton made sense. What I mean by that is that Everton create good moments, if you see [Thierno] Barry at the moment he doesn’t give himself the best chance, he misses a lot.
‘Balogun was in a wonderful vein of form at the start of the season, came off a wonderful World Cup, scored a lot in the Champions League, I think the Man United project would set him back.’
Speaking about his future last month, Balogun left the door open for a return to the Premier League after his failed move to Everton.
‘Yes, potentially. Football has many twists and turns as we’ve seen after the World Cup,’ Balogun told talkSPORT.
‘I was close to a transfer, didn’t materialise, but for sure it’s definitely an option.’
