Alli is back in England and recovering from injury, with ex-Spurs and Aston Villa boss Sherwood stating the ex-Tottenham attacker can still resurrect his career at the highest level.
“I think Dele could still turn it around, I don't think he's done. He's still young enough, but he needs someone to talk to and someone needs to talk some sense into him. He hasn't turned into a bad player overnight, but he's certainly lost his way," Sherwood said on William Hill podcast Up Front with Simon Jordan.
“Now he needs to realize that he needs to adapt and find a way. He needs to look at himself and say 'I can still turn this around', don't blame anyone else and look at himself and realize that he's still young enough.
“I'd love to see him turn it around because he'd get a lot of credit for that. As much as he feels like everyone is against him now, I think everyone would admire his determination to turn it round.
“Dele hit the floor running after he was brought in from MK Dons. He had a manager who wanted to work with him and improve him and he bought into the playing style.
“I don't think it's a case of him needing to find the right club to fit him. I think he really needs to decide in his own mind that he needs to shape himself to be the right person to fit a football club and not just wait for it to happen, because it won't. I think he's either not listening or he's not getting the advice."