Ballack himself snubbed Madrid when he signed for Bayern Munich from Bayer Leverkusen in 2002 and says Hazard will be “giving up a lot” if he departs Stamford Bridge.
The Spanish giants are reportedly keen to land the Belgium captain, but Ballack has warned him not to think about a transfer.
“Hazard has a decision to make and he needs to consider what he would be walking away from at Chelsea if he moves to Real Madrid now,” Ballack told ESPN FC.
“Right now, Hazard is the top player at one of the biggest clubs in Europe, living in a fantastic city. Does he want to give all that up and then try to be a success at Real Madrid?
“He should realise that he can be the top player for another few years at Chelsea. It has taken time for him to establish himself at this level at Chelsea and he will need to start again if he moves to Real Madrid.
“I can’t give him advice on this. It is not just about a lot of money, even though that does count in a decision for every player. If we just speak about football, he has signed for Chelsea for a long time and he will not have the standing he has now at any other top club. This should be important for him.”