Goal understands that Manchester City are prepared to take the lead in the race for the 18-year-old's signature with a £30 million bid in the summer, while reports on Tuesday linked him with Spanish giants Real Madrid.
Chelsea and Manchester United are also in the running for the new England international and Pochettino, when asked about the increased speculation, declared his belief that Shaw would fit in perfectly well at the Santiago Bernabeu.
"He can play at Real Madrid or in the world starting XI. He has the quality to do so," the Saints boss told reporters.
|14/1||Southampton are 14/1 with Bet365 to beat Newcastle 3-0|
The Argentine remains adamant that he will not address his future until the end of season, insisting: I'll repeat what I said exactly last week. Everything is calm and we are working to finish the season off as best as possible."
Southampton host Newcastle on Saturday, knowing that they would move ahead of their opponents in the table with victory, but Pochettino expects a response from Alan Pardew's men after they were beaten 3-0 at home by Everton on Tuesday.
"We're expecting quite a physical side, a very strong side, especially after being defeated at their home ground against Everton," he added.
"They will be wanting to put it right. We are expecting a very physical opponent."
Pochettino also revealed that Japan defender Maya Yoshida has been sidelined for a month but still believes that he will be fit for the World Cup, while also noting that Southampton are also monitoring the fitness of defender Nathaniel Clyne, midfielder Steven Davis and forward Jay Rodriguez, who are battling knocks.