Former England goalkeeper Peter Shilton believes that Tottenham’s recent drop in form could be a “blessing in disguise” for the FA with manager Harry Redknapp rumoured to be first choice for the national team vacancy.

The 62-year-old who won a record 125 caps feels that without the prospect of Champions League football at White Hart Lane, both club and boss would be more willing to part ways and make it easier for the governing body to agree a compensation package.

However, Shilton has urged the FA to make a decision on who will guide the Three Lions through their Euro 2012 campaign, claiming the continued indecision could be harmful to England’s chances.

"There is this situation where Harry might be going for the Champions League spot and so he wants to be loyal to the club," Shilton told reporters.

"But maybe the fact Spurs have had a dip in form could be a blessing for England.

"Maybe they [the FA] think they can announce it a bit earlier if Spurs are not going to qualify for the Champions League.

"But the sooner the better. It is a bit of a dilemma and you can understand the FA because they've got this club-versus-country situation.

"For the England fans and team, it has got to be done as soon as possible."

Shilton has insisted that he does see the benefits of a possible Redknapp appointment but claimed that if he was in charge he would have appointed Sunderland boss Martin O'Neill to succeed Fabio Capello.

He added: "I've felt for a while now that England should have been doing a lot better. I've not been totally impressed with the managers they've had.

"Although Capello's record is very good, it just wasn't right for the last World Cup with his preparation," explained Shilton.

"I would have gone for Martin O'Neill. He has won things. He's a winner and gets the best out of people.

"I think he may have played a bit more of a British style with a bit of continental style in it, but a style that was effective.

"But Harry would be my choice if it was an English manager. It's his time. I know Spurs have had a dip in form but Harry is going to play football the right way.

"He will have the players' respect. He will pick players who play football and can entertain the public as well."

Although Stuart Pearce is currently at the helm in a caretaker capacity, Shilton feels the former Manchester City manager is not ready to take control of the national side full time.

"Although I played with Stuart and he has been involved with the FA a long time, the England fans deserve to have the man who is taking them forward for the next four years," he explained.

"Stuart, by his own admission, although he is 50, doesn't see himself as the man.

"I am also hoping by getting the new man in you will get that reaction you always get from the team when a new manager takes over.

"There is a bit of a spark, a bit of enthusiasm, you want to prove a point."