Although the England camp confirmed that Alli's issue will be monitored over the coming days, Merson thinks that the 22-year-old would be wasted in games where the opposition is likely to defend en masse.
"I probably wouldn't have played Dele Alli in that [Tunisia] game and I wouldn't have been fussed about playing him against Panama," the former England international told Sky Sports News. "Dele Alli needs to be playing in games where the other teams are going to have a go at us and there's grass on the other side.
"He's very good without the ball and makes good runs, but there's got to be space. In the first two games there will be 10 behind the ball, but against Belgium and in the knockout stages I think Dele Alli will be a better player."