Venables wrote in his column for the Sun: "At least Fabio Capello will not have to look far to find the perfect replacement for the suspended Wayne Rooney in Poland and Ukraine next summer.
"Just one or two pegs along in his England dressing room, in fact.
"There has already been much debate about who will take Rooney's place at Euro 2012 while he serves his punishment for his latest moment of madness in Montenegro on Friday night.
"There is no doubt it is a problem for Three Lions boss Capello. But the ideal solution is right under the Italian's nose - and his name is Ashley Young."
Venables believes Manchester United's £16million summer signing has been "England's best player" in recent matches.
He wrote: "He was certainly the best player in Podgorica before Capello replaced him with Stewart Downing on the hour.
"He scored the first goal and set up the second as he revelled in his attacking role wide on the left and showed all the attributes that makes him the perfect player to fill Rooney's role just behind the main striker.
"Just like Roo, Young is an intelligent footballer who reads the game well and has excellent technique and skill. He is also able to pick out a pass and find space on the ball himself.
"He may not be as prolific in front of goal as Rooney but he is improving with every appearance on the international stage.
"He has become one of Capello's most reliable - and exciting - performers. And I do not see any reason why he cannot fill Rooney's shoes at the finals.
"He may play wide most of the time for club and country these days but he has played in a central role before.
"And he knows all about feeding Darren Bent after their successful, if short, stint together at Aston Villa.
"How long Rooney will be out for is up to UEFA. The worst-case scenario would be a three-match ban, which means by the time he is available we could be on the plane home."
Meanwhile, Fabio Capello has warned Rooney that he may have put his Euro 2012 dreams at risk with his red card in Montenegro on Friday night.
Capello revealed he would not automatically consider Rooney for selection again after his suspension.