Madrid have openly stated their desire to bring Bale to the Bernabéu, insisting the winger’s asking price would not be an issue, while City and United are also reportedly interested.
Hoddle, who spent 11 years at Spurs before returning as manager in 2001, wants Bale to stay at Tottenham, but if forward does leave north London, the former England boss expects the Welshman to stay in the Premier League.
“If he does move, I think he will settle easier at another club in England,” Hoddle said.
“He could get Champions League football there. But I want him to stay at Tottenham.”
Hoddle won the FA Cup twice and the Uefa Cup before deciding to call time on his Spurs spell and move to French club Monaco in 1986.
The 55-year-old Spurs legend lasted four seasons at Les Rouge et Blanc before returning to England with Swindon Town in 1991.
Hoddle moved to France aged 30, and former Chelsea manager believes Bale should wait a number of seasons before moving abroad.
“He is still young enough to secure a move abroad later in life when he could cope better with it,” added Hoddle.