The Wales international has been put on the market after falling out of coach Zinedine Zidane’s plans, but the high costs involved have made a sale look unlikely.
Reports this week said that Manchester United are no longer interested in the forward, who joined the La Liga giants from Tottenham Hotspur for £85 million in 2013.
Calderon, who was president of the Bernabeu club between 2006 and 2009, believes that a temporary move away from the Spanish capital could suit both parties.
"His situation here is very difficult," he told Sky Sports News.
"It is clear Zidane has discarded him in his mind. He showed that last season by not having him in the starting line-up. It is very disappointing for a player like him.
“Also the problem is the transfer fee. Real Madrid want to get a lot of money for him but I find that difficult.
"Maybe the best thing for everyone would be a loan. The player could recover his confidence on the field and Real Madrid could see his value rise.
"He wasn't successful here for many reasons - injuries, also the handicap of the money. When he came we paid more than we did for Cristiano (Ronaldo).
"People thought he should be better than Cristiano but that is very difficult."
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