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| Dean Saunders: Sacked by Wolves on Tuesday following club's relegation from the Championship |
Wolves dismissed Saunders, who only took charge in January, following the club's relegation to League One, with Owen Coyle, Darren Ferguson and Kenny Jackett - who resigned from his Millwall post on Tuesday morning - installed as the early favourites to replace him.
Sheffield Wednesday boss Dave Jones, who spent nearly three years in charge at Wolves, has also been linked to a return to Molineux.
And Murray, who retired in 2010 after an injury-plagued 12 years at the club, said Wolves will find it difficult to bounce back.
"The Wolves players have to realise that in every single game they're going to be a massive scalp," Murray said.
"In the Championship Wolves are a big scalp, but in League One other clubs will go there desperate to play them and when they go away to these teams, it's going to be a lion's den.
"But everything is geared up there with all the staff behind the scenes and everything else and the budget.
"I think they've still got £16million of parachute payments and everything else, then I believe Wolves can get back.
"But the appointment, the person who comes in, it's a massive task just to lift the whole place."
With a number of men lined up to replace Saunders, Murray says the club needs someone to install confidence back into the recently relegated side.
"Owen Coyle is obviously proven and has taken Burnley out of the Championship, has done well with Bolton as well and is very likeable, so he would come in with enthusiasm," he said.
"I think the club and fans want to see someone lift the place, give them that confidence.
"They've gone with a couple of inexperienced people, now they want to go with people who have a bit more experience.
"I live in the Wolves area and people would like to see Dave Jones come back for example."
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