Hoddle believes the 18-year-old, who has been a target for Bayern Munich, needs to be playing regular football.
"If you're good enough you're in. The lad has got talent," he said.
"If he's not going to get consistent football at Chelsea then he's got to go somewhere else. Now is the time he needs consistency. We've got to see whether he can be consistent.
"We've got to see when he has a bad spell, can he come back. These are the learning curves as a youngster you need to go through."