On Thursday Dyke asserted that England's youngsters have had their development hindered due to the high volume of foreign quantities in the Premier League, thus having negative long-term implications on the national team.
However, Di Canio - who first arrived in England in 1997 to join Sheffield Wednesday - believes that talent from overseas can prove beneficial for the nation at both club and international level.
"[Foreign influence] can help raise standards in England, bringing fresh techniques and ideas," the Italian told reporters.
"But if English players buy into different techniques and ideas, they [England] will not go out of tournaments early.
"That is what I hope for, because there are positive foreign influences on the English game."
Di Canio also enjoyed spells with West Ham United and Charlton Athletic, before returning to English football in a managerial capacity with Swindon Town in 2011.