Shilton, who represented his country a record 125 times, believes that Pickford is narrowly ahead of Butland in the pecking order due to his attributes and role in helping the Toffees stay up.
"I watched Pickford in his debut, and in the two games that he has played. He has been commanding, shouting at his defence," Shilton told Sky Sports News.
"Playing for Everton in the early part of the season, I thought Pickford held them together. £30m, inexperienced, goes to Everton and he's holding the team together.
"Butland, although Stoke got relegated, also he kept his confidence. But I would say Pickford is in front at the moment."
Joe Hart, England's previous undisputed first-choice goalkeeper, has missed out on a place in the squad altogether.