Coates is disappointed the 31-year-old City striker has been left out of Roy Hodgson's squad for Euro 2012, which was named at Wembley Stadium yesterday.
"It was ever thus. I think it is self evident that your chances are enhanced if you play for one of the perceived glamour clubs," he told The Sentinel.
"I am disappointed for Peter. He's had a great season and, in my opinion, deserves to be in the squad.
"He's a wonderful player who has been a tremendous asset to the team this season.
"It is a shame he has missed out, but I wish England all the best for the championships."