Scholes, who came through the ranks at Old Trafford back in the early 1990s, feels that youngsters aren't given the same chances that were afforded to him in the early days of his career.
"When we were coming through, it was nearly all English players with maybe one or two Irish or Welsh," Scholes told the Daily Mail.
"But clubs now have seven or eight European players coming over to the academies. Surely that can't be helping the English players.
"There should probably be a rule on it because, sooner or later, it is going to affect the national team as there are just not enough players."
Scholes retired in the summer.