Hoddle, who on Wednesday was confirmed as a member of the Football Association's commission to look into improving England's fortunes, believes legislation is required to boost top-flight opportunities for homegrown players.
"The rules have got to change in the short term," Hoddle told Press Association Sport.
"We have to help the England manager to have a better base over the next two or three years to get the experience that these players need in our top league.
"Sixty-eight percent (of players) of the Premier League (are not eligible to play for England) at this moment in time and getting worse over the coming years - if we don't do anything about it - is too much.
"We have to be ruthless in this. We have to be thinking about English, English and English again.
"Whether it's the professional end now or whether it's grooming youngsters coming through, we really do have to - for the sake of English football and international football - give these lads the opportunity.
"The number one criteria (for the commission) is to give the England international team the best possible chance to win the Euros or the World Cup.
"If we don't do it, it's going to get worse and worse and we're going to get further and further away from winning any of those two major trophies."
The Premier League insists it is part of the commission, yet has not taken a place on it - Premier League chairman Anthony Fry declined an offer from FA chairman Greg Dyke - and Hoddle believes it may be "wary" of probable findings.
Certainly the implementation of a quota in a league adored globally may not be welcomed by clubs and officials, even if it is by young English talent.
A State of the Game study for BBC Sport has found that English footballers account for less than a third of all the minutes played in the Premier League, a drop of three percent from the 2007-08 season.
"Perhaps they're a little bit wary of what's going to be said, what changes are going to happen," Hoddle added.
"Maybe they're just waiting until they understand it a bit more.
"I do believe that they do want the English game to thrive.
"Behind the scenes I'm pretty sure they're going to help out with whatever the commission comes up with, the ideas and the rule changes. There will be discussion, there will be dialogue, I'm pretty sure of that.
"Hopefully they'll see what we're trying to do and say, 'well, actually we do want representation on there'."
Hoddle, an advocate of residential footballing schools, praised Dyke for having the "vision to change things, to make things happen, not to just wear the badge" during his four-year chairmanship and believes he can contribute ideas to the commission.
Also part of the think tank, led by Dyke, is Football League chairman Greg Clarke, FA vice-chairman Roger Burden, League Managers' Association chairman Howard Wilkinson, new Professional Football Association chairman Ritchie Humphreys, Crewe director of football Dario Gradi and former England defender Danny Mills.
Another subject for discussion will be the qualification criteria for representing England, something which became a talking point as a result of the FA declaring an interest in Manchester United's Belgium-born Adnan Januzaj, who has Albanian and Kosovan parents.
Hoddle is unconcerned by place of birth.
"I think you've got to go by whatever the rules are of the day," said Hoddle, pointing to the example of Jack Charlton's Ireland team which fielded numerous English-born players.
"I'm not too worried about 'oh, you've got to be born in this country', if the rules are the rules they are there for everyone to see."
What Hoddle hopes is that England can produce a talented group at the same time.
He added: "You're always going to get talent coming through. A (Wayne) Rooney, a Michael Owen.
"It's whether we can get 15 of them coming through at any given two-year period. Then you're on to something. That's going to take time."
The problems the commission will discuss are even more stark in the rest of the British Isles.
If the percentage of Premier League playing time for English players is alarming, it is more so for Scottish (3.27 per cent), Welsh (3.17 per cent) and Northern Irish (0.93 per cent).
Northern Ireland boss Michael O'Neill said: "Of course it's a concern.
"It's early in the season so the longer it goes you'd expect those stats to decrease rather than increase due to the nature of selection.
"We need more of our players in the Premier League."