Hamilton will depart the Brackley-based squad at the end of the year and join rivals Ferrari.
Vettel walked away from F1 at the end of the 2022 campaign, hanging up his helmet on a highly successful career.
A number of suitors have been named as potential replacements for Hamilton at Mercedes, including Carlos Sainz and Alex Albon.
However, Jordan believes that Vettel is Mercedes’ best option as a short term solution.
“I have to say, in the short term, I would look at Vettel,” he said on the Formula for Success podcast.
“Because we know these cars are not as difficult to drive as in your day, in my day, when you needed a neck the size of a wine barrel.
“It’s just ridiculous, the cars are not as difficult and that’s why you have the longevity. That’s why you have [Fernando] Alonso being able to continue and that’s why you have the much older drivers.”
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Vettel nationality a bonus
Vettel spent his final two years competing for Aston Martin having opted to join the British manufacturer following several seasons at Ferrari.
The 36-year-old has never raced for a German team, bar his F1 debut that saw him enter the 2007 United States Grand Prix with BMW Sauber.
Jordan has asserted that Vettel’s nationality could be key to the route Mercedes takes when appointing Hamilton’s successor.
“I think Vettel has to be in the frame, because of the German contact,” he said.
“We know what happened with Michael before, he left Ferrari and where did he go? Back to Mercedes, so that’s a possibility.
“You’ve also talked about [Esteban] Ocon, I happen to like Albon. That could be a possibility but I do see him as possibly a replacement, down the road, for [Sergio] Perez in some years to come.
“But, if it was me, and the way Formula 1 is progressing, I would look at Vettel – I think it’s a good choice. It makes sense for Mercedes, a German driver in the car.”