Shilton, who is England's most-capped ever player, believes that they need to develop a plan to teach youngsters at a grass roots level.
"We really do need to improve in the next 10 years and I am afraid it could take 10 years to get it right," said the England legend.
"I hope it can be achieved in half that time, but we have got to look at how we are developing the skills and techniques of the right nine, 10-year-olds, who might one day make it all the way into the national team.
"If we do it earlier, we have to rely on the likes of young players such as [Jack] Wilshere - and here is a player I do rate highly - but we need more of the same, and it's not going to happen overnight."
Shilton was part of England's squad for the 1990 World Cup, helping them to fourth place.