Wigan chairman Dave Whelan has accused the Football Association of "lacking the guts" to sack Sven-Goran Eriksson.
The defeat by Northern Ireland was Eriksson's first in qualifying matches
The England coach was widely criticised after last week's shock 1-0 defeat by Northern Ireland in a World Cup qualifier in Belfast.
Whelan told the Manchester Evening News: "Sven-Goran Eriksson would have been sacked by now if it was up to me.
"It's obvious the FA don't have the guts to get rid of him even though he's had his chance and should be replaced."
There were widespread calls for Eriksson's dismissal when England followed their 4-1 friendly defeat in Denmark and unconvincing 1-0 qualifying win over Wales with defeat in Belfast.
But the FA has backed the Swede, who said in an interview last weekend that he was worth his reported £4.5m-a-year salary.
"The whole system and pattern of play under Sven is flawed. We seem to have lost the plot," said Whelan.
Whelan, who funded Wigan's rise to Premiership status, believes Eriksson's number two Steve McClaren should get the manager's job, with Manchester City boss Stuart Pearce as his assistant.
"I know it is easy to criticise and I accept it is a difficult job managing England but the man in charge must be passionate and realise he owes it to the nation to win the World Cup," said Whelan.
"Let's see someone in charge with feeling for the game and let's make sure England are coached by an Englishman."