The former Argentina international has urged the Santos sensation to pick a role model and one of the Spanish giants amid continued rumours over a move to Europe
The Brazil international is one of the hottest prospects in world football, and despite pledging his future to the Vila Belmiro club in the summer, speculation still continues over his future.
The 19-year-old was awarded the Fifa Puskas Award for the best goal of 2011, and Menotti has told him to decide on which of the two La Liga giants he wants to play for.
"If he wants to be CR7, he should to go to Madrid. If he wants to be like Messi, he should sign for Barca," the 73-year-old told Radio Marca.
Messi won the Ballon d'Or for the third consecutive year on Monday, with many comparing the Argentine to the greats of the past.
Menotti, however, feels that Pele is the best player to have ever played the game.
"The best of all was Pele, who is a mixture of [Alfredo] Di Stefano, [Diego] Maradona, [Johan] Cruyff and Leo Messi," he continued.
Menotti coached Barcelona back in 1984, and revealed that he has told current trainer Pep Guardiola, who has admitted he may leave the Camp Nou, to stay in Catalunya.
"It is clear that Pep should continue for many years at the club; I told him to stay for life," Menotti concluded.