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.
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"He would say 'I'm gonna knock him out in the fourth round, and he used to do it in the fourth round. That's what I used to love about Muhammad Ali.'"
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.
"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."
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In addition to being widely regarded as the best boxer in history, Ali was outspoken in his fight for social justice, becoming a key figure in the civil rights movement and a leading voice against the US war in Vietnam.
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."
Khan has raised some $80,000 for the drought-affected people of Pakistan's southern Thar district, and pledged to build new wells in the desert region.
He will also unveil a new boxing academy in the capital Islamabad aimed at unearthing future fighting champions.
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