Mexico great believes all the 'best players' dream of playing for the Liga giants as he has his say on matters in the Spanish capital
Aguero, 23, has been tipped to be a replacement for Carlos Tevez at Manchester City, but he has also been linked with a move to Atletico's city rivals Real Madrid.
But Atletico appear reluctant to sell the Argentina international to their neighbours, leaving City with a clear path to land the €45 million rated striker after Italian side Juventus pulled out of the race.
However, Sanchez who moved from Atletico Madrid to Real Madrid in 1985, suggests Aguero has a chance of doing the same.
"Its not rare for all the great players from around the world to dream about going to Real Madrid, and Real Madrid in this case always expect to sign the best in the world, and I suppose Aguero is one of these players," Sanchez told EFE.
"I don't think [joining Real Madrid] would affect Aguero because it is normal for a player to want to better themselves professionally and people should understand this."
Asked whether Real Madrid should sign Aguero or Santos ace Neymar, Sanchez said: "I cannot say this as I am not the coach or a director. Both are great players, among the best in the world."
Atletico have consistently stated that any clubs interested in Aguero would have to meet his €45 million release clause.