Ferguson confirmed Posh had turned down a bid from the Canaries - thought to be around ?3million - for Mackail-Smith and stressed he is in no rush to sell him.
And the 27-year-old came in for praise from Ferguson, who was speaking after watching the prolific frontman set United on their way to a 4-1 victory over Sheffield Wednesday with his 27th goal of the season in all competitions.
Ferguson said: "They (Norwich) need to make an improved bid for Mackail-Smith as their offer was nowhere near good enough.
"They want to get into the Premier League which is worth an awful lot of money, and if they want to be serious about it they need to make us a decent offer.
"He will only go if it suits this football club. I've spoken to the chairman about it and he agrees with me. Craig is a very important player for us and has been for some time and I certainly don't want to lose him now while we are so well placed ourselves."
Source: PA
Source: PA