The 28-year-old hasn't featured much for Real Madrid this season and could leave in the summer in search of more game time.
"James is big enough to make his own decisions now," Valderrama told Caracol Radio.
"If it was me, I'd be running away from Madrid.
"He's good enough to play for any team. I wouldn't doubt him for an instant.
"He's a great player, he's already proved it.
"He can start for any other team, he's got the quality to play anywhere in the world."