"I think it was a mistake to move to that club (Chelsea)," he told Bild.
"There was a space available for his position with Manchester United and he would have fitted into their system perfectly. The same with Real Madrid. But at Chelsea his role was already filled by Frank Lampard.
"Where can he move to now?
"His first transfer opportunity is during the winter, and I hardly suppose Bernd Schuster's Madrid are interested after bringing in Arjen Robben and Wesley Sneijder."
And Beckenbauer was also quick to rule out a return to the Bundesliga leaders after the club shelled out almost £50million this summer on a squad revamp after missing out on the Champions League.
"No, that won't happen," he said.
"Firstly it isn't what he wants and in all honesty we can no longer afford to pay his wages."