The former England manager Glenn Hoddle has called on the government to assist the Football Association in establishing a minimum quota of homegrown players in Premier League squads.

Hoddle, who was named on Wednesday among the high-profile figures in a new FA commission to help the emergence of young English talent, believes the national side will be able to flourish only when increased numbers of homegrown players feature in the top flight.

A recent survey revealed that English players accounted for less than a third of all minutes played in the Premier League, while a Guardian investigation last summer showed that only 189 English players featured in the top division last season. As few as 88 of them appeared in more than half of their team's games.

"I think it has got to come," Hoddle said of a quota system. "We need to be bold and say enough is enough, there have to be x amount of English players in a squad of 18, or in the 11. Germany, Spain, Italy, France – they don't have our problem.

"There are a multitude of ideas that I've got that need to change things in the long term. In the short term, 68% of foreign players playing in the Premier League is a major concern and we need to do something about it.

"We do need help, maybe from the government. We need to change the rules – it's OK having a wonderful brand in the Premier League, which it is. The English players do learn from the foreigners but the problem is there are English players who are as good as, could have been as good as, or are better than, the foreign players that are coming in.

"They are being blocked, so that is something that we really need to change. Whether politically and financially that happens, I don't know, but it's up to us in this commission to try and make these changes."

The FA chairman, Greg Dyke, met Hoddle in June to discuss his potential involvement with the commission and the former BBC director general has also recruited a number of the English game's leading figures.

Greg Clarke, the Football League chairman, Howard Wilkinson of the League Managers' Association, Ritchie Humphreys of the Professional Footballers' Association and other figures such as Dario Gradi and Danny Mills have joined the commission, which is expected to meet twice a month.

Hoddle, who coached England at the 1998 World Cup only to be sacked shortly afterwards following controversial comments on reincarnation, described the Premier League's decision not to join the commission as "disappointing". The Premier League chairman, Anthony Fry, declined Dyke's offer to join although the organisation insists it will co-operate with any review.

"That's a little bit disappointing. But I'm pretty sure behind the scenes they are happy," Hoddle said. "Because we are successful financially, that's the reason all the foreign players are coming here.

"The ideas that we put across then have to be implemented by the FA, the Premier League and whoever else. The rules have to change, we have to get more English players playing in the top league. Long term, we need residential schools for elite English players.

"We have to be ruthless in the way we try and make England better. Any which way, within any rules, if the government change rules or the FA or the Premier League then great. But we need to be ruthless, we owe it to football in this country to make sure we are giving ourselves the best opportunity to go and win trophies."

After Hoddle left his post as the Wolves manager in 2006 he established a second-chance academy in Spain for players who had fallen out of the professional system. The former England midfielder recently launched an online app called Zapstarz aimed at helping those aged eight to 16 develop their skills.

The 55-year-old also stated his belief that England should call up any players that the rules allow them to, regardless of birthplace, following the debate surrounding the international eligibility of Manchester United's attacker Adnan Januzaj. He said: "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."