"Gary can't really say we have no chance, but I'll say it if you want," Scholes told The Telegraph.
"It will be very difficult to win. I know we have some decent players to go with Steven Gerrard and Wayne Rooney, but as a team, are they going to be good enough when you think about it? You will have to get past Brazil, Argentina, Chile, who have just come onto the scene, Spain, Italy, Germany.
"I always get the impression that, whenever England come up against a big nation like those, it is usually a signal that we are going to go out. They're OK against the Polands and Ukraines – England will beat them all day long – but as soon as a top team comes along? Well... "
The former Manchester United star won 66 caps for the Three Lions between 1997 and 2004.