Deeney has scored twice and picked up an assist this season as the Hornets have made an impressive start to their Premier League campaign and sit in fourth place.
However, his form was not enough to warrant a call-up for the recent games against Spain and Switzerland, and Deeney thinks Gareth Southgate's selection of Welbeck, who has yet to start in the Premier League for Arsenal this season, sends the wrong message to players at smaller clubs.
"I respected his decision," Deeney told the Premier League Show . "I can’t say I was overjoyed not to be in it, I’m one of those that believe you have to earn it, I don’t think four games is anywhere near enough to say I should be in the England team.
"I think his response was interesting, that he’s good enough for Watford but not for us, that message comes across that anyone who plays for a lesser team that doesn’t play a certain style of football isn't going to be good enough for England.
"If you look at a Danny Ings, Glenn Murray, Callum Wilson, we would probably all be arguing ‘well, what do I need to be in the team?’ Because no offence to Danny Welbeck, I’ve got a lot of time for Danny Welbeck, but he’s not playing but he’s still being picked, so is it a case that’s just the team?"
The Watford captain also opened up about how difficult he has found it to keep his weight down after turning 30.
"I got up on my 30th birthday and went to the bathroom and looked into the mirror and thought ‘ooft, is this what it has come to? It was the first time I’d looked at my body and I wasn’t happy with what I was seeing," he continued.
"'This season I’ve been written off and people have called me fat so I’ve thought I’ll show you. I just need to be motivated and stimulated mentally. I know I can do anything if I put my mind to it."
It is not the first time Deeney has spoken about off-the-field problems. He has talked about his battle with mental health in the past and now revealed that he has been seeing a psychologist.
"Everyone’s got issues," the striker said. "There’s a stigma in football that you earn a certain amount of money, how dare you have issues.
"It’s perceived that money can take care of anything but in my experience it makes everything 15 times harder because you can’t act ‘normal’ and you’re not allowed to be vulnerable or weak but we all are.
"It’s gone from grieving, where I lost my dad and my grandad within 18 months, trying to learn how to grieve, how to let people back in, obviously, when I went to jail I closed up really quickly.
"I always break it down I am three different people. I’m Troy Deeney the footballer, I’m daddy who the kids get to see and I’m Troy which a few of my mates get to see. I’m genuinely a big softie, I put this front on, and I’m just a laid-back fool really.
"I’ve got a psychologist now, I still see him twice a week, it’s gone from lifestyle to sports management, how to get me into that zone."