The Ballon d'Or holder is reportedly seeking a move away from the Santiago Bernabeu due to scrutiny in Spain over his tax affairs.
Prosecutors in Madrid have filed a complaint in which they accused Ronaldo of a "voluntary" and "conscious" breach of his tax obligations, amounting to a figure of €14.7 million.
His representatives Gestifute have denied the accusation, while his club have said they are "absolutely convinced that our player… will prove his total innocence in this process".
Manchester United and Paris Saint-Germain have been touted as possible destinations for the 32-year-old, while Bayern Munich was on Monday moved to dismiss rumours linking them with a stunning swoop.
Ballack, who exited Bayern under something of a cloud when he left for Chelsea on a free transfer in 2006, expects Ronaldo to remain at Zinedine Zidane's LaLiga and European champion.
"I think it's an emotional situation right now… all I can say is he's playing at a fantastic club," he said.
"And I'm sure he's happy at that club.
"It's a bit of a difficult situation right now. But he's experienced enough to handle it as well and find a good solution for himself.
"Real Madrid is a fantastic club and I don't see him at another club right now."