Madrid are one of the growing number of teams to have been linked with a move for the Arsenal skipper, who is approaching the final year of his contract and shows no sign of signing an extension.
The Gunners are reluctant to lose their top scorer but find themselves facing a decision of whether to cash in on him this summer or risk losing him for free next term.
Podolski admits that the Gabon international would be a "big loss" for Mikel Arteta's side, but believes that getting funds could make the deal worthwhile if they are able to reinvest wisely.
"When you have a fantastic season like he had, many clubs are interested. When a player has a wish to play for a big team or a dream to play in Italy or Spain, or like Aubameyang and his link with Real Madrid," Podolski told Sky Sports News.
"If he has a dream to play for this club when he's young, then why not? As a player, you have to take this chance to play for a club like that. Of course for Arsenal, it'll be a big loss if they have to sell him but this is the business of football.
"My opinion is you lose a big player, he had a fantastic season with a good scoring record, but you can make money on a player, sell him and you can invest in new players. For a player like me or Aubameyang, when a big club is calling, you always want to have this dream."
Aubameyang has scored 61 goals in 97 games for the Gunners, including 20 in 32 appearances this season. body check tags ::