Gasly has been extremely poor this year, finishing 11th and eighth in the opening two races of the season.
The 20-year-old was promoted from Toro Rosso but is being majorly out-performed by team-mate Max Verstappen.
If results do not improve a switch could be made mid-season to keep Red Bull ahead of the midfield pack.
And Villeneuve reckons Gasly may not have what it takes to race for one of the leading F1 teams.
“If Gasly continues like this, returning to Toro Rosso would not be a surprise,” Villeneuve told Sky Italia.
“In the past, many of these boys struggled to move from a small team to a better team. People underestimate it.
“You can compare it to a driver going from Formula 2 to F1. Some can adapt more easily than others.
“Gasly will not have much luck with [Red Bull boss Helmut] Marko this year.
“We know that he is able to change his mind every five minutes.”
One option for Red Bull boss Christian Horner is to swap Gasly with Daniil Kvyat.
Russian motorsport star and former F2 racer Mikhail Aleshin thinks his fellow countryman would do a good job for Red Bull.
“It was very good to see Kvyat showing his character and not letting Pierre Gasly go past in Melbourne,” he told Sportbox.
“It is hard to know why Gasly drove so inexpressively, but if Kvyat continues in the same spirit, we can all have hope that Daniil could move to the stronger team.
“I understand that such thoughts may be premature, but for us this situation is, of course, positive.”