However, he has also struggled with injuries and, when fit, he has been regularly left out of the starting line-up since Zinedine Zidane's return as coach to fuel speculation Bale will be leaving the club this summer.
Sherwood told Bwin : “I see that Gareth Bale is having a tough time at Real Madrid and Zidane has potentially given the green light for him to leave the club.
“I don’t think Bale wants to leave and he will be on a big contract so Real Madrid will have to subsidise him.
“I can’t see Gareth Bale returning to Tottenham because I just don’t think the financials would work.
“It would be a very romantic return, but it would be a huge fee combined with a massive wage bill not dissimilar to Sanchez joining Manchester United.
“Where Bale ends up next depends entirely on his motivations.
“I actually think Gareth Bale is more likely to move to China this summer than the Premier League.
“If he is looking to maintain his Real Madrid salary and lifestyle, I think Bale will move to China.”
Sherwood also believes that money could be a factor in whether Toby Alderweireld stays at Spurs, with the defender having one year left on his contract and a release clause of £25 million ($32.5m) which can be triggered this summer.
“I think it is unlikely we will see Alderweireld in a Tottenham shirt next season,” added Sherwood.
“Alderweireld is reaching the stage in his career where he only has one big move left and he is looking for that super pay day.
“Tottenham will not offer him the pay day he wants but they have reached the latter stages of the Champions League and EFL Cup this season so we will now find out what really motivates him.
“Alderweireld will not be a Tottenham player if he is motivated by money.”