The 23-year-old triple award winner has been linked with a big-money move away from White Hart lane after Spurs failed to qualify for the Champions League, with the likes of Manchester United and Real Madrid reportedly interested
However, following similar claims by manager Andre Villas-Boas, Sherwood has no fears Bale will seek pastures new ahead of the new season.
"He’s fantastically happy at Tottenham," Sherwood told talkSPORT. "I see him around the training ground every day, he’s got a good working relationship with the manager and he loves his teammates. They show him the respect that he deserves and he gives it back to them.
"I don’t see him banging the door down trying to get a move. I believe one million percent he will stay at Tottenham. It’s crucial for all teams when you’re at the level of the league that we are, pushing for Champions League football, that players like Gareth Bale stay at your club.
While Sherwood is aware that a number of clubs will be eying up a move for the former Southampton man, he feels Tottenham is the right club for his development.
"There will be a lot of clubs wanting to take Gareth but he’s 23-years-old and fortunately for Gareth and Tottenham, he’s got good advisers," he added. "They know that it’s not a flash in the pan, that he's got built in quality. Next year he will be exactly the same. There’s time for him to go overseas or to another Premier League club but I think he needs to stay here.
"He’s developing fantastically well, he just needs to put a level of consistency in his performance over a few seasons. He’s already shown he can do it week-to-week, he needs to kick on next year and produce the same quality that he has this year. The opportunities will arise for him in the future if he wants to go over there."