Defeat at home to Nottingham Forest left Spurs one point above the dropzone ahead of the international break. The result also left caretaker manager Igor Tudor in further doubt.
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"I would keep them (Tottenham) in the Premier League. I think someone with common sense is keeping them in the Premier League," Sherwood told Sky Sports.
"They have the quality to be able to do it. You have to make them (the players) feel good again, you have to get your confidence back in the group."
He added: "It's not complicated, you train the players every day, eleven to eleven, so they know exactly where their positions are."