The 45-year-old has reportedly been added to the list of possible candidates to replace under-fire manager Zinedine Zidane at the Bernabeu at the end of the season.
Pochettino was unwilling to rule himself out of the running for the lucrative job, but he claimed that taking over at Arsenal or Barcelona were at the very bottom of his list of priorities due to his affiliation with Tottenham and Espanyol.
"I am never going to be manager of Barcelona or Arsenal," he told reporters at his weekly press conference. "That is my decision - I prefer to work on my farm in Argentina than in some places."
Asked about Madrid, Pochettino added: "You never know in football. That is the problem. It is a very unstable situation. It is a lot of rumours about this, about that. Tomorrow, Daniel [Levy, Spurs' chairman] could have a bad night and say, 'Oh, I am going to sack Mauricio.' And then I look stupid saying I am not going to work in one place or another or another.
"It is different if it was [Sir Alex] Ferguson or [Arsene] Wenger, that they are symbols of the club. It is not a position like Ferguson or Wenger - they have full control of everything and they decide if they stay two more years or another year or retire."
Pochettino spent eight years at Espanyol in his playing days across two spells, before becoming manager in 2009 for three-and-a-half years.