Dyke: England should win 2022 World Cup
In his first key speech since replacing David Bernstein, Dyke also said he expected England to reach the semi-finals at Euro 2020.
Dyke believes England will make it to Brazil 2014 despite Roy Hodgson's men sitting second to Montenegro in Group H of UEFA qualifying.
"The first target is to reach the semi-finals of the European Championship in 2020 and the second is to win the World Cup in 2022," Dyke said.
"At Euro 2020, where we would expect Wembley to host a number of games, it will give us a focus to have a real crack at making inroads into the later stages of the tournament.
"Home advantage has provided England with two of its best three showings over the past 50 years. And from there, we would expect to move on to the 2022 World Cup.
"Some will say targets are only burdening our players with more pressure but top players have to be able to handle pressure if they want to be winners and we want to be winners. Let me also make it clear that this does not mean we are writing off our chances before 2020.
"Qualification for Brazil is hugely important and I know how hard Roy Hodgson and the players are working to get us there. I am confident we'll make it."
Dyke is concerned England will be affected by the English Premier League's work permit and loan systems.
He will head a commission including Premier League chairman Anthony Fry, Football League chairman Greg Clarke, League Managers Association chairman Howard Wilkinson and Clarke Carlisle's successor as PFA chairman.
Dyke wants more Englishmen playing in the Premier League and fears player development has become a problem.
"The truth is that we have become a finishing school for the rest of the world, at the expense of our own players," Dyke said.
"In future it's possible we won't have enough players qualified to play for England who are playing regularly at the highest level in this country or elsewhere in the world.
"This is not designed to start a blame game. This is not a criticism of the Premier League."
Dyke and his committee will report in the New Year as to why it has happened and how it can be changed.