With the club's owner Simon Jordan looking to ease some of the Selhurst Park outfit's £30million debt, the £5million-rated star could be sold in January to aid Palace's cause.
And Derry thinks the 19-year-old should set his sights high and aim to move to a top four Premier League club.
"You've got to be fair and say when he's on that form, he outgrows the Championship and the only place for him is the Premier League," he said in the Daily Mirror.
"His ability is far better than any of the boys who play at this level.
"Manchester United would be good for him. What you don't want is for Victor to go to a club and just flit around the squad.
"If he went to a top four club they would help him and nurture him because, talent-wise, I've never seen anything like it.
"He probably wouldn't play every week for United but he wouldn't have the pressure he would get if he joined a club like Birmingham, Fulham or Bolton."
Moses has come through the ranks at Palace and has helped his side into a respectable mid-table position in the Championship so far this season.
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