The former Blaugrana shot-stopper believes the Colombia international would be a great fit for the Santiago Bernabeu side, but the Catalans would have to make changes for him
Falcao has been in impressive form in the opening weeks of the 2012-13 campaign, with hat-tricks against Athletic Bilbao and Chelsea, and is continually being linked with a move to a bigger club.
The Colombia international's father revealed earlier in September that the attacker dreams of playing for Real Madrid, and even though Falcao has since dismissed those claims, Vitor Baia feels Los Blancos would be a good option for him.
"Falcao would fit in perfectly at Mourinho's Madrid, he'd really suit Jose's system," the former goalkeeper told La Xarxa.
"Barcelona, on the other hand, would have to change their style, although it would be a luxury of a problem for [Barca coach] Tito [Vilanova] to find a way to have him in the team together with [Lionel] Messi.
"Falcao is a phenomenon, a monster. He's an old-fashioned forward who does it all. With Falcao in my team, I'd be a very happy man. He's a top player who could play for any side. He's complete."
The 26-year-old, who has a contract with Atletico until the summer of 2016, scored the first goal of Colombia's 4-0 win over Uruguay on Friday.