Former England manager Hoddle was unveiled on Wednesday as a member of a Football Association commission designed to improve the fortunes of the national side.
"It is unrealistic for England to think they can go and win the World Cup in Brazil," Hoddle told BBC Sport.
"Let's first qualify, then get the youngsters experiencing a tournament in Brazil so that in two years' time we can have a real go at the Euros," added the 55-year-old, himself a former England midfielder.
Only around 30 percent of the players currently playing in the English top flight are eligible for selection by England coach Roy Hodgson.
Since winning the 1966 World Cup as hosts, England have only reached the semifinals of two major tournaments and the commission will investigate the reasons for their recent failings.
England have yet to book their place at the 2014 finals in Brazil although they will assure themselves of a spot if they win their final two qualifiers, both at Wembley, against Montenegro on Friday and Poland on Tuesday.
Hoddle was in charge of England from 1996 to 1999 and took them to the second phase of the 1998 World Cup in France before the team lost on penalties to Argentina in a match where David Beckham was sent off.
However, he was sacked as England manager after giving a newspaper interview in which he was quoted as saying disabled people were "being punished for sins in a former life
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