Munster are currently second in the table with the play-offs in sight and a trip to Connacht next up on Saturday as McGahan looks to go out with a bang in his final season.
The Australian will only have an informal role in selecting his successor but believes current forwards coach Foley is the man for the job.
"Anthony's proving himself as a leader after captaining Munster for a long period of time and very successfully," McGahan told the Irish examiner.
"He's built excellent relationships with the staff and the players as it is and he has the capabilities of doing the role, I don't think there's any doubt to that.
"There's always been a plan in place with his involvement. He's gathering experience along the way.
"There's many different elements you need to do this job, not only the tactical awareness but it's a big organisation with 46 players, 20 full-time staff and three or four consultants, let alone the outside stakeholders with regard to media, supporters' expectation etc.
"You're always conscious of providing the next person coming in the best opportunity to be successful. While I won't have a formal position in that, informally I'm sure that I'll be involved in some capacity.
"I'm sure I'll be asked my opinion on some of the expectations of the job and some of the advantages of the job and the challenges the new applicant will face and give some insight into what sort of skills would be required."
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