Germany midfielder Lewis Holtby, now at SV Hamburg after playing for Tottenham and Fulham in the Premier League, agreed the Football Association has embarked on the mission to catch up and said England's "time will come".
"The youth system in Germany is the best in the world. The training, the managers, the facilities, all of that was very good when I was coming through and now it's improved even more," he told BBC Radio 5 live.
"In England, the FA is definitely improving. You can see how many young players there are in the national team, how many prospects coming through with a lot of talent. There is [Manchester United striker] Marcus Rashford, [Tottenham's] Dele Alli is the future of England's midfield and [Tottenham striker] Harry Kane has been top of the Premier League scoring charts.
"But Germany have always been ahead at being ready for tournaments, knowing when to be ready. All praise to the German FA for the very good work they have done over the years on that."
He added: "I read a lot about people in England looking to the German youth system with big eyes, hoping to be like them - but the FA looks like it's trying to find its own way.
"Their time will come. If they keep progressing this way they should have no problems."
Southgate, a firm admirer of the German system, added: "We can learn from their mentality. When we've played German teams they just have that belief in the way they play.
"I'm watching Gary Cahill on the ball now and he has got that belief and confidence from the way he has been asked to play this year.
"You are working in a different system and opening your mind. Gary working with Antonio Conte at Chelsea reminds me of what [former England boss] Terry Venables gave me as a player, just stretching you into different challenges and doing things that improve you.
"We won't get there overnight but I think we've got players who are able to do that."