While the 37-year-old is now expected to play a leading role as an ambassador during the Games, Eriksson expressed disappointment his former skipper was not selected.
He told BBC Five Live's Sportsweek programme: "I haven't seen Beckham play for a long time but I think David should anyhow be there because it is the Olympic Games, it is Great Britain, it is England, it is London.
"So I would have picked him, put him on the bench at the very least.
"I hope he will be involved in some way in the Olympic Games, it's important."
He added: "It's a difficult one but David is an icon, he should be involved in the Olympic Games in some way.
"If he can't be in the football team I hope he can be involved in some other way."