Zinedine Zidane left Bale out of his latest Champions League squad in Madrid and it looked for some time that he would leave the Santiago Bernabeu this summer.
The Frenchman cited a knock for Bale's exclusion but reports in Spain suggested that he was fit, casting further doubt over the pair's relationship.
The Wales international found himself getting booed in home games at Real Madrid, despite scoring arguably the Champions League final's greatest ever goal and bringing the trophy home four times.
Bale has had criticism for not adapting well to the Spanish lifestyle and reports have claimed that still struggles to speak the language, while his passion for golf has also come under scrutiny.
Berbatov thinks that Madrid fans don't know what they have in Bale and that he would take him as a new signing at his former club Man Utd.
"It is a difficult situation but he is back playing now, so they must have sorted things out to a point," Berbatov told Goal. "They must have sat together and fixed it. They both want Madrid to do well.
"For someone like Bale to score so many goals and still not get the recognition and respect because of that, it seems strange to me. They were booing Ronaldo at times in Madrid. I would watch that and think 'what the f*ck do you want?!' I'm like... come on guys!
"[Eden] Hazard has had problems, a bit like [Paul] Pogba at United. People think like that. When you cost £100 million, they think you can just dribble from one box to another and score. It puts negative thinking in the fans' minds.
"Footballers are human beings and it makes them see negative things in their game when they get treated like this.
“He needs to get out if he doesn't play regularly. I would love to see him at Man Utd if Madrid doesn't want him. That would be good for him."
Now 38 years old, he is regarded as a Bulgarian legend and he will soon get his UEFA A Licence as he prepares for life as a coach. Berbatov has also written his autobiography and is working as an ambassador for Betfair.
He has been back to watch Leverkusen in the Bundesliga and he believes that Kai Havertz is a special player, with clubs lining up to sign the youngster next summer.
"I have been to watch him a few times at Leverkusen," Berbatov added. "Many people are watching him, I can tell you that because I have big ears. I know who is talking to him. Lots of scouts are watching him. He needs to improve on a lot of things to get better.
"If he comes to England he needs to work on his physique a bit. You don't need to be big but you do need to be strong and lean. He is a great talent. He is good on the ball, technical, gives the right pass and can finish.
"The only way for him is up."
For more from Betfair Ambassador Dimitar Berbatov head to www.betfair.com/berbatov and to find out more about the new Betfair Exchange ‘How to Hub’ head to www.betfair.com/howtoexchange.