Villas-Boas' position as Tottenham manager has come under scrutiny in recent weeks because of a dip in form.
Tottenham lost 6-0 at Manchester City on Sunday and Sugar has become bemused with the way the Portuguese has set his team out in recent matches.
Sugar's main role in TV show The Apprentice is to fire contestants who are not up to the job, and the successful entrepreneur, who now sits in the House of Lords, clearly feels Villas-Boas has not been up to scratch himself so far.
"I've struggled to understand AVB's tactics," Sugar told talkSPORT "You wonder how we are going to get a goal.
"Four, five or even six games before [the 6-0 defeat to Manchester City] you couldn't see where the goals were coming from.
"The formation that AVB plays, I don't understand at all. I put my hands up, I am no great football expert, but I don't understand it at all."
And Sugar would like to see Ferguson replace Villas-Boas.
"My dream would be that my good friend Sir Alex Ferguson will get itchy feet in about a year or so and decide he wants to get back into management and maybe bring his wonderful wife down to London and manage our team," Sugar added.
"If he comes to watch the game, I will suggest some nice houses for him and his wife to stay in."
Andre Villas-Boas the manager of Tottenham Hotspur looks on during the Barclays Premier League match between Manchester City and Tottenham Hotspur Andre Villas-Boas the manager of Tottenham Hotspur looks on during the Barclays Premier League match between Manchester City and Tottenham Hotspur
A £100million summer spending spree raised hopes among the Tottenham faithful, but that hope has given way to fear, especially as a rampant Manchester United team are due at White Hart Lane on Sunday.
Sugar added: "(Chairman) Daniel Levy did a very good deal with [Gareth] Bale. He was going, there was nothing he could do about it, and he has given (sporting director) Franco Baldini the money to go out and spend, but I wonder if it is just a case of spending for the sake of spending it.
"Maybe we should have sat back a few moments and been a bit selective, a bit like (Arsenal boss) Arsene Wenger."
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