Dixon believes Alexander-Arnold and Leicester City's Ben Chilwell are England's best options going forward on the right and left of the defence.
"Obviously [Kyle] Walker's experienced and he's not in the squad," Dixon said on ITV.
“I think in the squad these two [Alexander-Arnold and Chilwell] are the best for me.
“Alexander-Arnold, his season last year was phenomenal going forward, he's learning the game defensively. I'm a big fan of Chilwell as well at left-back, he's going to be a top, top left-back.
“He's playing in a side as well at club level that's got options.
“You look at the way Leicester are playing, they've got that little No 10 in [James] Maddison, they've got wide players, they've got balls over the top, so he's playing all sorts of passes."