The want-away striker is set to leave the Allianz Arena in January after publicly admitting his disillusion at being a benchwarmer to Luca Toni and Miroslav Klose.
"Podolski has a lot to offer, but when he left Köln I had my doubts," Schuster told Marca on Tuesday.
Earlier speculation suggested that Real were contenders to acquire the Poldi's services, however Schuster said that the player needs a special treatment he won't find in Madrid.
"He (Podolski) is a modest young man and he needs people around him, who support him. At clubs like Bayern and Real you have to be able to fight for your place."
Despite being a substitute at Bayern, Podolski is a regular for Joachim Loew's Germany and will be leading his country's attack against Wales on October 15th.