The 22-year-old is odds-on favourite to win the Golden Boot in the tournament after his six goals helped the South Americans reach the quarter-final stage in Brazil this summer.
Consequently, Europe's elite clubs are rumoured to have been alerted by Rodriguez's form, and Valderrama claims that nowhere is "too big" for the in-demand AS Monaco playmaker now.
"I hope he goes to Spain. There's not much I can add after the World Cup he has just played," he told Marca. "Whoever had any doubts has now seen what he can do.
"Not even Real Madrid is too big for James. Look how he played this World Cup [at] just 22 years old, he has shown he can play for any club in the world.
"Great players cost a lot, and he's a great player. He's an eight or 10-year investment and the club that buys him won't regret it, whoever buys him will get their money back."