The West Ham boss hits out at the perception of English managers and insists that representing their national team is only Premier League players' third priority
The former Bolton Wanderers boss claimed he was considered for the top job before Steve McClaren's appointment in 2006, but even then the FA had wanted Luiz Felipe Scolari.
He told The Sunday Mirror: “We’ve had this obsession with foreign coaches and I think the myth they are better than us is being put to bed.
“The English national team should be managed by an Englishman. When I came close to landing the job the brief was for an Englishman.
“And although the FA eventually gave the job to Steve McClaren, it was only by default because they couldn’t persuade Felipe Scolari to take it.
“For managers like me the pinnacle of your career is going to be landing the England job because you're unlikely to land a top four job in the Premier League."
Allardyce went on to criticise the attitude of England's Premier League stars, who he feels prioritise their club careers over their country, but said that they were often hampered by the unnecessary pressure placed on them.
He continued: “Playing for England is arguably third on the list of priorities for most players and that is always going to have an adverse effect going forward.
“I don’t prescribe to the theory that players don’t care when they pull on an England shirt, but it’s not a priority.
“And that will always hamper England’s chances of success going forward.
“If you are going to manage England then you have to live with that and try to overcome it.
“But it’s not easy when there is so much pressure on the biggest players to perform for their respective clubs at home and in Europe and deliver silverware.
“You can argue, given the lack of success, that expectations going into major tournaments are completely unrealistic and that takes its toll on players. There is no room for error, no honeymoon period when you’re a player or manager for England.
“Look at England in the run-up to the 2010 World Cup in South Africa. Almost a faultless qualifying campaign and then, given the ridiculous expectations, the team performed very poorly."
Allardyce is also dismayed at the lack of English players currently given an opportunity in top-flight English football.
“If you go back 10 years there were probably around 225 English players playing top-flight football which gave the national manager a massive pool to select from," he added.
“Now it’s ridiculously low, somewhere around the 75 mark.
“And there is cause to delude ourselves that perhaps some of the players are better than they really are when they are playing in teams dominated by world-class players. The same applies to the Champions League which is the main priority for the top English sides.
“You see all the world’s best players, but you can’t buy a player to play in the national team, you have to work with what you have.”
Allardyce went on to criticise the preference for foreign managers in the Premier League and claimed that there were "political" factors at play whenever the FA appoint a new coach.
He said: “When Sir Alex Ferguson steps down at Manchester United you suspect they will turn to a foreign manager. Chelsea in recent years have always gone foreign and Arsenal and Manchester City are managed by foreign managers.
“And that has an adverse effect when it comes to the FA appointing a national coach.
“I accept there is massive pressure on them to get it right but the appointment of an England manager will always have a political element attached.
“It won’t always be based on performance.”