Ruud Gullit believes that English teams' failure to invest in home-grown talent is costing them on the European stage.

Manchester United were knocked out of the Champions League on Tuesday evening by Real Madrid. This has left Arsenal the only remaining Premier League team in the competition, after Chelsea and Manchester City were eliminated at the group stage.

The Gunners are facing an uphill task to stay in the competition, as they trail Bayern Munich 3-1 from the first leg, and the decline of England's elite is down to a lack of young talent being brought through from the clubs' academies, according to Gullit.

"If you look at Arsenal's starting line-up, how many English players are there? Look at Manchester City, Chelsea, all these teams," Gullit told the Daily Mail.

"If you look at the German teams they have lots of German players, the same in Spain. English teams have to be thinking about that as well because English teams are also having difficulty [in Europe]."

Gullit has managed both Chelsea and Newcastle United in the Premier League.