Beckham is out of the World Cup after damaging his Achilles tendon in action for AC Milan.
Venables told The Sun: "It's a terrible blow for David and a terrible blow for England. There's no doubting how much playing for his country still means to him.
"He's been extraordinarily patient and done everything right and I'm sure he would have been involved in Fabio Capello's squad.
"Although he may not always have started games, he's a fantastic option to have if things aren't going right and you need someone to get crosses over in the last 15 or 20 minutes of a game.
"It's very, very sad. He's had a fantastic career. It's hard to imagine he'll make another major tournament after this."