The teenager has been one of the Premier League top performers this season and his sparkling form has helped Spurs up to second place in the Premier League table and five points behind leaders Leicester.
Alli has earned plenty of new admirers this term and has scored seven goals and made six assists in 27 Premier League games for the Lilywhites.
And Merson is convinced that Alli should win the young player of the year award after his fine form for Spurs.
Merson told Sky Sports: “This is an easy one, it just has to be Dele Alli.
“He’s a seriously talented player and to make the step up from League 1 to the Premier League and then break into the Tottenham team so quickly, it’s just incredible.
“The boy has to go to the Euros and start for England. If Roy Hodgson wants his side to play adventurous and exciting football then he should play him. I’d have him and Ross Barkley in a three-man midfield.”
Tottenham are currently preparing for their Europa League last-16 clash with Borussia Dortmund in Germany on Thursday night.
The Lilywhites will then turn their attentions towards their trip to Aston Villa in the Premier League on Sunday afternoon as they look to return to winning ways.
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