Joachim Low’s men clinched the title in Brazil thanks to an extra-time volley from 22-year-old Mario Gotze against Argentina on Sunday night and lifted the coveted trophy for the fourth time in their history.
However, Thompson stressed the fact that Germany’s 2014 success has not happened overnight but is instead the result of years of planning.
Following the country’s group-stage exit at Euro 2000, the German FA embarked upon a well-publicised upheaval of their youth system – and are now reaping the rewards.
“Germany got it spot on and were deserved winners,” the former Liverpool defender told Sky Sports News.
“Going back 10, 12 years I remember speaking to [former Germany midfielder] Didi Hamann about it and he was saying they had nobody coming through and the youth systems were extremely poor.
“But they went back to basics, with better coaching, took care of the kids and made sure a lot more German kids were coming through the system to play in the Bundesliga. That was good preparation.”
England boss Roy Hodgson was praised for taking a relatively young squad to Brazil, but Thompson says the FA must also adopt Germany’s approach to coaching.
He says better-qualified coaches should be working on the development of young players at Premier League clubs – and also urged top-flight managers to give English kids a chance to show what they can do.
“We’ve got to try and get more English players in the Premier League, they’ve got to have the chance,” he said.
“Managers can buy 16 and 17-year-olds from all over the world now and everyone is thinking they’re going to miss out [on the next star], so they’re buying these kids and playing them instead of the local or British lads.
“There is talent there but people think foreign is better. We need stronger personalities to give British kids the opportunity.
“But the coaching has to be far better, too. In our academies at all Premier League teams we have to have elite coaches. From about the age of 12 right through to under-21 there should be elite coaches.
“I know you need to give young coaches a chance, too, but they need to learn their trade in the Championship.
“There are talented young lads in England but not enough. Some of these German lads are only 22 years of age and they’ve got a fantastic chance for the next two World Cups. That takes planning, that takes coaching.”