The WBC Silver welterweight title holder, currently in Pakistan to open a boxing academy and carry out charity work in the country's drought-hit south, said Ali's larger-than-life personality had earned him millions of fans around the globe.
"I was always looking up to him. A great fighter, a guy who wasn't only just a fighter but also a great personality outside the boxing world as well," the 29-year-old told AFP.
Khan added that Ali's fighting style, which combined the speed and agility of a lightweight with the power of a heavyweight, had made him a unique fighter.
"If you looked at the way he used to fight he was very very different to any other fighter.
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"He was a heavyweight, where he was really, really big, he was heavy. But he moved like a lightweight. So he floated like a butterfly and he did sting like a bee because his shots were fast, powerful and explosive. And he used to hurt his guys, you know, he hurt his opponents."
He also raised millions of dollars for charity, including his own organisation dedicated to Parkinson's research, a disease he suffered from from 1984 onwards.
Khan said: "I look up to him and I wanna do what he did. That's why I come places like Pakistan and I spend time here.
"I kind of picked that out of his book -- how Muhammad Ali used to help the less fortunate people. He was more of a people's champion, not just a champion but a people's champion and that's how I want to be."
He will also unveil a new boxing academy in the capital Islamabad aimed at unearthing future fighting champions.