The Southampton icon appeared as a guest on the William Hill podcast "Up Front with Simon Jordan."
The 54-year-old talked about the burden of taking penalties while reflecting on England's defeat by Italy in the Euro 2020 final.
Bukayo Saka of Arsenal, who was 19 at the time, missed the deciding penalty in his first career-opening attempt from the spot.
Le Tissier criticized Southgate's decision to award Saka the penalty and questioned how well the Three Lions manager has performed overall since assuming the position.
He told Jordan, a former owner of Crystal Palace, "That was the most appalling decision made by an England manager I have ever seen in my life."
In my opinion, Southgate performed as minimally as was reasonable in light of the opposition we faced.
"Look at the positions we were in when we should have continued; I believe the decisions we made were the reason we didn't continue."
"I believed that when we went up 1-0 in both the Italy game and the Croatia [World Cup 2018 semi-final], we didn't go to end the game. We took a seat and invited the team to join us.
Despite his criticism of England's manager, he questioned whether there are any other candidates.
He criticized the England manager but also questioned whether there was anyone else who could take his place.
"I think the more pertinent question is who else is there," he remarked. You are representing England, hence I believe an Englishman should run it.
It involves taking pride in your nation. I believe that your manager should be subject to the same criteria as your players if you are participating in an international event where all of your players must be English. Since you are all members of the same squad, why are there distinct eligibility requirements for the manager?
"I have this innate sense of fairness and the desire to carry out tasks correctly."
During the penalty shootout, Saka was one of three players to miss the corresponding shot.
Marcus Rashford and Jadon Sancho also missed, and all three players faced racist slurs on social media in the days following the game.
Le Tissier has criticized Southgate in the past regarding the European Championships.
He claimed in November that the 'enlightened' England manager would not heed his advice over taking penalties.
According to him, I have occasionally volunteered my services to go and coach the players at World Cups and European Championships if they want some help on taking penalties.
Fair enough, I suppose other managers may have been more effective.
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