Bale has been the subject of intense speculation regarding a move overseas, with Spanish giants Barcelona and Real Madrid rumoured to be planning a big money move for the Welshman. The 23-year-old enjoyed a standout season for Spurs in which he netted 21 Barclays Premier League goals and was named the PFA Players' Player and Young Player of the Year.
"If he does move, I think he will settle easier at another club in England," Hoddle told The Sun.
Despite his efforts, the north London club missed out on the final Champions League place to rivals Arsenal on the final day of the season, leading some to suggest Bale would look elsewhere in order to further his career.
Yet Hoddle believes Bale should remain in England and the 55-year-old is better placed than most to talk about the winger's future after he swapped Tottenham, with whom he made over 300 appearances, for Monaco in 1987.
Hoddle added: "The only ones he can realistically join are Manchester United and Manchester City. He could get Champions League football there. But I want him to stay at Tottenham."
Hoddle, who also managed Spurs for two years from 2001 and is now being linked with the vacant England Under-21 post, added: "He is still young enough to secure a move abroad later in life when he could cope better with it."
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