Odegaard turned down a host of interest to join Real Madrid from Stromsgodset in 2015 and it is understood that the midfielder, who is still just 17, is on £80,000 a week at the Bernabeu.
The Norway international has only made one first-team appearance for Los Blancos, however, and is currently representing their Castilla side, for whom he has made 45 league appearances.
It was claimed that Gladbach wanted to sign the teenager on loan in the January transfer window, but Eberl has branded the rumours "not true".
"It's not true. Two years ago, Odegaard was the most followed young player in Europe, a big promise that chose Real Madrid in the end," Eberl told Sky Germany.
"Now it can be said that it was a bad signing, but he's not even 18 years old [yet]. He is looking for a club in which he can develop his talent. I think that we, in this moment, would not be the best choice for him."
Odegaard made his debut for Real Madrid on the final weekend of the 2014-15 campaign at the age of 16 years and 157 days.