Haas, Alpine and Williams are the teams with a potential vacancy to prevent Ricciardo from leaving the sport.
Former world champion Button, who now works in an advisory role with Williams, told Sky: “I obviously work with Williams and know what they have coming, what is changing with the team and what has changed with the team.
“It’s a really exciting prospect working with a team and developing a car around you and the way you like to drive it. I’m one of those people, like Daniel, that wants a car that suits my style. It would be the perfect scenario, I think.”
Ricciardo has been outperformed by McLaren teammate Lando Norris this season.
Williams have Alex Albon contracted beyond the end of 2022, but Nicholas Latifi is fighting to extend his deal which is set to expire after this season.
“Leading a team and beating your teammate in a car that is not so competitive is much better than being in a team where you’re not so competitive against your teammate,” Button said.
“Mentally, that is so tough. If it has the right backing and the right people, you should 100 per cent go for the opportunity.
“For him, driving at somewhere like Williams or another team, I think is the right thing for him to do.”
Ricciardo is currently the joint-fifth highest-earning F1 driver in 2022, pocketing a reported £12.2m. Williams pair Albon and Latifi each earn below £1.7m so funding the more expensive Ricciardo could be a hurdle.