The Denmark international has seen his stock rise at the north London side, having played an instrumental role in their run to the Champions League final this term.
Eriksen and his Spurs colleagues managed to come from 2-0 down against his former club to win 3-2 at the Amsterdam Arena in the Champions League semi-final on Wednesday night.
Mauricio Pochettino’s side will take on their Premier League rivals Liverpool FC in the Champion League final at the Wanda Metropolitano Stadium on Saturday 1 June.
Eriksen has been regularly linked with a move to La Liga duo FC Barcelona and Real Madrid throughout the Premier League season following his impressive displays.
Real Madrid boss Zinedine Zidane is thought to be eager to revamp his squad following a disappointing campaign for the La Liga giants.
Former Spurs manager Sherwood is expecting to see Eriksen in a Real Madrid shirt next term.
“I would love to see Eriksen sign a new contract and commit his future to Tottenham, but I’m not sure that he will. I think we might see Eriksen in a Real Madrid shirt next season,” Sherwood told bWIN.
“Real Madrid are always just a phone call away from signing most players in the world because when that phone rings, it’s very difficult to turn down Real Madrid. With only a year left on his contract, there will be sharks in the water sniffing blood.”
Sherwood added: “I think Real Madrid will be looking for Eriksen to replace Modric in the heart of their midfield. Eriksen is good enough to play in any team in the world and he can play in a number of positions too, he’s that good.
“Modric was a great player when he was at Tottenham, but he has gone on to achieve unbelievable things that he probably wasn’t capable of in the Premier League.
“You surround Eriksen with world class players in a non-competitive league where his team has the vast majority of the possession and it is scary to think what he could do with a football.
“Quality technicians like Eriksen and Modrić will always shine and the cream always comes to the top.”
Eriksen has scored seven goals and has made 12 assists in 34 appearances in the Premier League this season.
The Danish midfielder has also contributed two goals and four assists in their run to the Champions League final after beating Borussia Dortmund, Manchester City and Ajax en route.
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