Gareth Southgate's side are into the last four of the competition after defeating Sweden 2-0 in the quarters, and the former Sheffield Wednesday star believes that they can progress even further.
"Nobody would've thought England would make the semi-final ahead of the tournament. They will not get an easier quarter-final than that, Sweden didn't offer anything apart from three good chances in the second half," Waddle told BBC Sport.
"I think England have a good chance of progressing to the final as well."
England will face either hosts Russia or Croatia in the semi-finals.