FA Chief Executive Martin Glenn stated they are open to a foreign manager, but Merson believes the next boss should be English.
He said: “We should have an English manager, that’s just my opinion.
“I know he’s been England manager before, and it’s been a while since he’s had a job, but for me it’s got to be Glenn Hoddle. It’s a no brainer.
“I think tactically he’d be great and he’s got knowledge of international football. I thought he was brilliant when he was in charge at France 98.”