"You must raise young players. It may mean people like me cannot play in the Premier League. But England have to make that decision."
Corluka, 21, believes English football is caught in a vicious cycle as a money-spinning league undermines England's chances.
He said: "The Premier League and FA must decide what they want - a great league or a successful national team?
"You have good players now but in five or six years they will be 30, 32. Where are the young English players coming through?"
Corluka added: "I know I'm a foreigner playing in England but I don't see young English players coming through.
"Apart from Johnson and Richards at Man City and maybe Theo Walcott where are the others? There may be good players but it's hard for them to play as you have many Brazilians, Croatians, Spaniards and French. It's hard to raise great players like that."
As for England's Euro qualifying woes, Corluka put it down to McClaren failing to forge a coherent unit - and a dose of arrogance.
He said: "England have lots of good players but they're not together, not like one team.
"They have the players to be one of the best but don't show it on the pitch. When they came to Croatia they said 'we'll win' but they underestimated us."