Sharp, who shared a dressing room with Ramsdale at Bramall Lane, spoke to talkSPORT about his old teammate's woes.
David Raya joined Arsenal from Brentford in the summer after a long pursuit with Mikel Arteta desperate to sign the goalkeeper.
But it has left Ramsdale on the sidelines after two seasons between the sticks at the Emirates and there has been talk that the England international could leave for first-team football.
And Sharp believes that could well be the case, offering insight on his former teammate, who came up through the Blades academy before rejoining in 2020 for one season.
Speaking to Alan Brazil and Gabriel Agbonlahor on talkSPORT Breakfast, the 37-year-old said: "He wants to play, I think he has already made that clear. I think he is disappointed.
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"It is one of them. It is football, it's cut-throat at times. I think they wanted to sign Raya before Ramsdale.
"They didn't get him so they got Rammers. The goalkeeping coach was at Brentford before that so they got [Raya] in for whatever reason.
"Whether it's because he is better with his feet… I am an old-fashioned traditionalist, make the save first.
"I think Rammers is pretty good with his feet. All goalkeepers make errors because it is a difficult part of the pitch because you're under the microscope all of the time.
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"When you have got two goalkeepers who want to be No. 1, it is always going to be the case.
"I think he would probably want to move but Arsenal probably don't want to see him go because he is a top-quality goalkeeper."
Interest in Ramsdale would be high should Arsenal put the goalkeeper up for sale.
Chelsea have been tentatively linked, as well as Newcastle, Wolves and even Manchester United but Arteta will unlikely entertain the thought of weakening his squad.
"I want Aaron with us," the Gunners boss said last month.
"I am very happy to have two very, very good goalkeepers and Aaron is staying with us.
"We want to be better, so we want to add to what we already have. That's the intention that we have."