"Atlanta is his hometown," the Houston Oilers legend said. "He's well-liked in that area, great organization and they could use a younger quarterback with fresh legs and everything."

Watson is on the verge of being shipped out of Houston -- and Atlanta has recently thrown its hat into the mix to try to score him in a trade.

Moon tells us he believes it's not just a ploy by the Falcons to drive up the price for the rival Saints and Panthers -- saying he thinks Watson has ties to ATL that shouldn't be ignored.

Notably, Moon says Warrick Dunn -- one of the Falcons' minority owners -- has a relationship with the former Clemson standout that could sway things.

"He put Deshaun in one of his houses [through his charity] many, many years ago," Moon said of Dunn. "So, there's a connection, a tie there with the Atlanta Falcons."

The Texans are also reportedly considering trading Watson to the Browns, in addition to the Falcons, Saints and Panthers.

Of course, a deal is imminent after Deshaun and the Texans had a messy breakup following allegations that he was sexually inappropriate with multiple female massage therapists.

Last week, however, a grand jury decided Watson will not face criminal charges over the claims in Harris County, Texas ... which paved the way for the MVP-caliber quarterback to return to the gridiron.

Moon -- who was inducted into the Pro Football Hall of Fame in 2006 -- tells us he doesn't think Watson will have any rust when he eventually suits up for his next team ... adding that he's happy the signal-caller will get to continue his career.

"I met him a number of years ago, he's a really first-class young man," Moon said. "Hopefully he gets back on the field sooner than later."