The former Tottenham boss believes the Three Lions must put faith in youth in order to advance, and hopes coaching reforms lead to a more refined generation of players
The Three Lions were eliminated on penalties after being being outplayed for large portions of the 120 minutes against the Azzurri.
And the former Tottenham Hotspur boss feels that the FA must bring through a new generation of players who are capable of playing a different style of football.
"We must get our kids to play, play, play. Realise it’s not all about being strong, big or fast," he explained to The Sun.
"I am pinning a lot of hope on the new St George’s Park development centre and on coaches at every level in England.
"What we have got to do is bring through kids who as defenders will be happy to bring the ball out and forwards who want to receive the ball in tight areas surrounded by the opposition because they are comfortable in possession.
"We need to bring through a few youngsters. But we still need those [experienced] players because now there is World Cup qualification for Brazil in 2014 to think about."
England being their qualification campaign for the 2014 World Cup with a trip to Moldova on September 7.