Speaking ahead of his side's game against Switzerland, which they went on to win 1-0, Loftus-Cheek talked up the overall quality in the squad.
England have one of the youngest squads in Europe and a manager in Gareth Southgate who wants to improve those players individually and as a collective.
"I think we definitely have that potential," said Loftus-Cheek to Sky Sports.
"We have to have that belief to try and change things around.
"We are in this transition phase at the moment where we want to become one of the best teams in the world - up there with Spain, France and Germany.
"We want to compete with them and dominate football.
"We are in this transition phase where we want to have it mentally in our heads that we are one of the best teams in the world.
"It is that belief to have the courage to play in tight areas and try and play football rather than just going long. It takes time but we are working towards it."