Salah is approaching the final weeks of his Liverpool career, with the Egyptian forward set to leave Anfield at the end of the season after nine glittering years on Merseyside.
That has naturally sparked intense speculation over his next destination, with clubs in Saudi Arabia and Europe both linked with the 33-year-old attacker.
Hierro, who spent last season as sporting director at Al Nassr, has now confirmed the Saudi Pro League side explored a move when Salah’s contract situation first opened the door.
But the former Spain international also made clear he believes Real Madrid would be the ideal destination.
Hierro told On Sport: “Salah to Real Madrid? Of course, I would love that.
“Salah is an outstanding player in every sense of the word.
“No one can deny his huge impact at Liverpool and the achievements he has made, especially winning the Premier League.
“I would love to see him at Real Madrid - anything is possible in football.”
Hierro believes Salah still has the quality to shine at the very highest level and says any elite side would want to sign him.
He added: “Salah is the type of player any club in the world would want to sign.
“He is exceptional and has a direct impact on the pitch.
“He is not just a great player; he is a true football phenomenon who makes the difference wherever he plays.”
The Madrid icon also claimed a move to Spain would boost La Liga as a whole, even suggesting Barcelona would benefit from his arrival in the competition.
He said: “Imagine him in La Liga, whether with Real Madrid or Barcelona - it would be a huge boost for the competition.”
Hierro then confirmed Al Nassr looked into a deal while he was overseeing recruitment in Saudi Arabia.
He said: “There were indeed many reports in the past about the possibility of Mohamed Salah moving to the Saudi Pro League.
“From our side, like any sporting management, when a name like Mohamed Salah comes up, it naturally attracts great interest because he is an exceptional player.”
However, Hierro admitted Salah’s priority at the time was Liverpool.
He added: “At that time, his main focus was on Liverpool, which is completely normal for a player of his level.”
With just weeks left of his Liverpool spell, Salah’s next move now looks set to become one of the biggest transfer stories of the summer.