 Vaughan has struggled, while England have mainly suffered |
Captain Vaughan has struggled, making just 83 runs in six innings in the Caribbean with his team's chances of making the semi-finals dwindling.
But Gough told the BBC: "The difference he makes as a captain is huge.
"There's no point him batting at six. We tried that with Michael Atherton in the 1996 World Cup and it didn't work."
Gough, interviewed by Five Live at the launch of the Friends Provident Trophy, went on: "He's had a hard time with his injuries and it's tough going straight into a World Cup.
"He has played 80-odd [one-day internationals] without getting a hundred and the longer it goes the harder it becomes."
Andrew Flintoff, England's best bowler in the World Cup so far, has batted poorly at number six, leading some to suggest he should open the batting instead of Vaughan.
But Gough, who has moved back to his former county Yorkshire after three seasons at Essex, responded: "I think that Freddie, when he has played at his best for England, is when he has come in at five.
"If there was any change it would be [Paul] Collingwood to come in at six, and Freddie to move up one place to five.
"When Freddie has been at his best it's been when he's got his eye in first."
Gough bemoaned England's defeat to Australia on Easter Sunday, but remained positive about their chances, even though they are yet to beat a Test team in the World Cup.
The holder of 235 wickets in one-day internationals said: "I think we have the potential to do well in the World Cup, especially without India and Pakistan in there.
"We are still in it and it comes down really to the game against South Africa whether we go any further.
"If we go to the semis, one individual performance can win us the World Cup."
England play their next Super 8 match on Wednesday, against Bangladesh. Habibul Bashar's side have already beaten India and South Africa.
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