The Three Lions song, which was a hit for Baddiel and Skinner with the Lighting Seeds back in 1996, has topped the charts again, following England's World Cup run.
However, despite the song's popularity, Souness believes that it acts more to enthuse opposition players than provide inspiration for England.
He wrote a scathing analysis of the song in the 'Sunday Times,' saying:
"If I was Gareth Southgate, sitting down to write his Russia 2018 report for the Football Association, then top of my notepad would be the following: never allow that song, Football's Coming Home, to be played again during a major tournament."
"They didn't have a monopoly on it when their teams and the FA were big players in the global power game back in the last century, and they don't now."
The pundit believed that the song provided Croatia with extra motivation to knock England out on Wednesday.
"You can say: it's just a song, only a bit of fun. But if I'm an opposition player, it would irritate the life out of me. That's my motivation there and then, and that's how Croatia said they had channelled the song."
"These are not the words of a bitter and twisted Scotsman. I have spent most of my working life in England and want to see the national team do well."
"There has been a feelgood factor between the players, fans and media which I haven't seen around an England team, and that's been great to witness. But I am also a professional footballer who's been around the block a bit."
The World Cup ended for Gareth Southgate's team in defeat, as they were beaten to third place by Belgium 2-0.