Speculation regarding a possible switch to the Santiago Bernabeu for the England international refuses to go away.
Despite being just 20 years of age, the midfielder is already a proven performer for club and country.
His efforts as a goal-scoring and creative threat from deep have drawn admiring glances from European superpowers, with Real said to be closely monitoring Alli’s progress.
Any deal would require them to dig deep, though, with it possible that a fee similar to the £85 million package put in place for Bale in 2013 would be required to get their man.
Salgado doubts that Alli is worth that at present, with question marks still hanging over the temperament of a player who picked up a reckless red card for Spurs in midweek Europa League competition.
The Madrid legend told talkSPORT: "Obviously they can pursue him because he’s a great player, he’s young, he’s got the ability and he’s got pace, too.
"But the price is too high, Real Madrid paid big money to Tottenham for Gareth Bale and now if they paid that money for Dele Alli it would be crazy.
"My question is can he cope with the pressure of playing for Madrid, which is going to be so many times more than at Tottenham.
"Quality on the pitch he’s got it, but at the moment I don’t know what’s going to happen and hopefully if they do sign him the price will be a little bit cheaper."
Spurs have no intention of parting with Alli any time soon, having tied him to a new six-year contract in September 2016, but a big-money offer over the summer would test their resolve.