Salah has been heavily linked with a massive move to La Liga after a sensational debut season at Anfield.
The Egypt international has scored 37 goals in 42 appearances across all competitions, and equalled a record held by Cristiano Ronaldo and Robin van Persie on Saturday when he scored in his 21st game of the Premier League season to give the Reds a 2-1 win at Crystal Palace.
Nevertheless, Adam, who spent one season at Liverpool after joining the club from Blackpool in 2011, does not believe that Salah is good enough to work his way into the elite Spanish sides.
Speaking to TalkSport, he said: "Where's he going to go? It's difficult for him, where does he go?
"Will he get a game at Real Madrid? Will he get a game at Barcelona?
"I don't think he would. I think he will stay there."
Salah has scored the same amount of goals as Madrid star Ronaldo this season, while he has also netted two more than Lionel Messi.