Iceland's players were told they would face "the most overrated national team" before their 2-1 Euro 2016 win over England, according to Eidur Gudjohnsen.
The ex-Chelsea man, 37, was part of the squad for the last-16 game and said former joint-manager Lars Lagerback questioned England's reputation.
"This is something Lars Lagerbeck pointed out," said Gudjohnsen.
"[That] in recent years we are playing against the most overrated national team side - looking back it is true."
Gudjohnsen added: "There is always so much pressure for them to do well at a major championship and they haven't for a long time."
Gudjohnsen, who has 88 caps for his country, explained Iceland were "more resilient" and showed "greater togetherness as a team" than the Three Lions.
Roy Hodgson stepped down as England boss in the immediate aftermath of the shock defeat and his successor Sam Allardyce left last week after a newspaper sting.
Under-21 manager Gareth Southgate has taken temporary charge and defender Kyle Walker believes the side must now be more "streetwise".
The Tottenham right-back said England lacked an alternative game plan at Euro 2016 but insists they have discussed solutions ahead of their World Cup qualifier with Malta at Wembley on Saturday.
"It was 'we are going to play this way', and if it didn't work, then we didn't really know what to do," said Walker, 26.
"But I feel for the Malta game we have different dimensions now. We have spoken, if something is not working, we need to go to this plan."
England are second in Group F, level on points with leaders Scotland, and travel to Slovenia on Tuesday.