The former West Ham and Everton striker believes Fodan needs to leave Manchester City if he is to reach his potential.
The 19-year-old has only been given around ten minutes of football by boss Pep Guardiola this season and Cottee is concerned the lack of competitive minutes will hurt his development as a player and his chances of getting into Gareth Southgate’s England side.
“I’m really frustrated with Phil Foden,” Cottee told talkSPORT.
“He is an unbelievable, outstanding young footballer but he’s got to play!
“If you’re sitting on the bench, yes people will say he’s training with the first team, but it’s not the same as playing.
“You have to get the game time and experience. He needs to play. This is a big season for him, and he’s not playing!”
During the international break Foden grabbed a brace for England Under-21’s as they beat Kosovo in their Euro 2021 qualifying match.
The attacking midfielder’s talents were on show as he pounced on two poor clearances to grab his goals and after the game he made it clear how important it was to him to get a full 90 minutes under his belt.
“It is the perfect start to qualifying. We are top now so I am happy,” Foden told BT Sport.
“We are a very young team and have not been together long, but we want to win and we play with a smile on our faces.
“I enjoy playing and it was important to get the minutes tonight. We are only early into the season so I am waiting for my chance [at Manchester City].”
However, Cottee feels Foden shouldn’t be sitting on the sidelines and waiting for a few minutes off the bench and instead take a page out of Bobby Duncan’s book, who recently left Liverpool to join Serie A side Fiorentina on a three-year deal.
“If I was Phil Foden, I would be banging on that door every single week and saying, ‘I want to play and if you’re not going to play me I’m going out on loan’,” Cottee added.
“The young lad [Bobby Duncan] has just left Liverpool because he wants to play football – these young kids have to play, they’ve got to learn their trade and Foden is not learning it on the bench.
“He’s 19 now and your career goes so quickly. You need to be in the first team and you’ve got to be playing.
“I understand it’s a great team and who does he replace, I understand that, but he’s such a wonderful talent.
“I think Foden has a place in that England team. We talk about the balance of that midfield and needing a creative player and Foden is that. He’s an outstanding talent and we need him in that England team.
“But unless he’s playing, which he’s not, he’s not going to get in it.”