Bale has been linked with a summer move to Real Madrid, but Hoddle believes that Manchester United or Manchester City would offer a more suitable route for the Welsh international if he departed White Hart Lane.
The former England boss told The Sun: "If he does move, I think he will settle easier at another club in England.
"The only ones that 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."
The 23-year-old has scored 55 goals in 203 appearances for Spurs since his arrival in 2007.