The Sunderland manager, who made 26 appearances for Uruguay, feels the South Americans will be too strong for Roy Hodgson's men in June's Group D meeting.
Friday's draw pitched the two nations alongside Italy and Costa Rica, with Uruguay the seeded team, despite having required a play-off to qualify.
"If I had to choose between the two, I'd put my money on Uruguay - and that's not because I'm biased," he said in quotes reported by The Daily Star.
"The group of players have been together for quite a while now and they're strong.
"They say in England, you're only as good as your two strikers and when you've got Luis Suarez and Edinson Cavani, you've always got a chance.
"Uruguay have a good system and are very difficult to play against. They have a way they play, good commitment and two great strikers."
