The 48-year old ex-Liverpool and Aston Villa man notched one cap for the Three Lions, back in 1991, and he is of the belief that Hooper can follow in his footsteps and represent England despite playing in Scotland's top flight.
"My advice to Gary would be not to get disheartened. He just has to keep producing for Celtic. There will be times when he thinks all the good work is pointless in terms of an England call-up," Walters told SunSport.
"I was jealous when the likes of Chris Woods and Terry Butcher were getting called up. I had to stay behind and listen to Ian Durrant's banter!
"I was envious of the lads going away to play the likes of Brazil while I was shopping on Sauchiehall Street.
"It was disheartening. You question whether you need to change club to help your international career.
"It's every boy's dream to play for your country and you do everything you can to increase your chances.
"Playing in England would have helped my case and it might help Hooper. But he's been playing in the Champions League at a good level all season, so it shouldn't be a problem for him.
"Being consistent is the key to his chances. It doesn't matter what league you are in - scoring goals is hard. The Champions League is the toughest competition in the world at the moment and Gary has scored in it.
"Celtic have exceeded expectations in the Champions League, so that can only help him. He just has to be consistent, keep getting goals domestically, and if he can score in the Champions League it will boost his profile.
"He will get in the England squad eventually if he keeps that up."