Alli has made just 13 appearances, including one start for Everton after leaving Tottenham on a free transfer in January.
The 26-year-old now looks set to move to Turkey to join the Turkish giants on loan, with the club having the option to buy.
McCoist, though, claims said it's sad to see his career path over the last few years and thinks he's too good for the Turkish league.
"It's two or three steps down [from the Premier League], he told talkSPORT Breakfast.
Asked if he would take him at Rangers, he said: "All day, man. All day. Yeah. I do, I really do [think he'd do a good job]. I'd take him all day man.
"He's completely and utterly lost his way," stressing the Scottish Premiership is not the walk in the park many people think it is.
"It's not easy, don't think for a minute it's easy. You look at the players that have come to Rangers beforehand, I'm not saying they've struggled but they've not been as big a success as people would have thought.
"It's a difficult place to play. But if you do play there, it's a fantastic place to play.
"I'm really sad that Dele Alli is going to the Turkish league. He just looks lost. He needs to go and not so much feel loved, but feel comfortable and go and enjoy himself.
"It's a sad story, it really is."
Alli was once a player who was scoring goals at the highest level for Spurs, and was even seen as the next golden boy of English football.
The player was instrumental in England's run to the 2018 World Cup semi-final, but has not looked the same since 2019 for various reasons.