The 23-year-old has been linked with a move to Europe after scoring 67 goals for Internacional since turning professional in 2009. However, Damiao said that he is in no rush to leave his homeland.
"Now is not the moment to be thinking of playing in Europe. I just want to continue improving and scoring goals," the Brazilian international told UOL.
"However, every footballer dreams of playing at a club such as Real Madrid, but I'm only 23 and there is plenty of time to take that step forward.
"I have a contract and I love it here and don't feel the need to move away right now. Even so, it's obvious that the day will come when I will leave Brazil to go and play in Europe."
Damiao has scored two goals in 14 appearances for his country.