The Belgian playmaker is being strongly linked with a switch to the Bernabeu this summer after the Blues ended up in third place in the Premier League table.
Recent reports have claimed that the 28-year-old is on the verge of sealing a deal to move to the Bernabeu to link up with Zinedine Zidane in Spain.
Hazard’s current Chelsea FC contract is due to expire at the end of next season, and that means that the Blues could lose him for nothing next summer if he does not pen a new deal.
However, former Tottenham Hotspur manager Sherwood believes that Chelsea FC owner Abramovich will have the final say about Hazard’s future this summer.
Speaking in an interview with bWIN, Sherwood said: “Ultimately, it is down to Roman Abramovich as to whether Eden Hazard leaves Chelsea for Real Madrid this summer or not.
“When you have an owner who’s got more money than God, it’s difficult for a player to call the shots. If Abramovich decides he doesn’t want to let him go, he doesn’t have to. He’s not worried about him being in his last year of his contract and recouping some money so he doesn’t need to sell Eden Hazard.
“But will he do the right thing? If Eden wants to leave, I believe he will be a gentleman about it and let him leave Chelsea after the service he has given the club.”
Sherwood continued: “Hazard has been courted by Real Madrid for a number of years and would absolutely make a difference to their team, especially as they’re in the doldrums at the moment.
“Real Madrid don’t just need big signings with a lot of noise around them, they need a player who can actually do the job on the pitch so they can compete with Barcelona again.
“Eden Hazard is one of the best footballers in world and he’s in that next bracket down from [Lionel] Messi and [Cristiano] Ronaldo.
“It would be a very exciting signing for the Real Madrid fans and because [Zinedine] Zidane likes him, everything points to him moving to Madrid this summer.”
Hazard will be hoping to help Chelsea FC end the season on a high when they take on Arsenal in the Europa League final in Baku on 29 May.
The Blues are aiming to gain revenge on the Gunners, who beat them in the FA Cup final at Wembley in 2017.
MORE: Man United latest news
MORE: Arsenal latest news
MORE: Chelsea latest news
MORE: Liverpool latest news