Al Wasl's current manager made the comments in an Italian TV interview on Thursday night after a 1-0 win over Bani Yas in the UAE Pro League.
"The English FA used the Terry excuse to get rid of him," Maradona said.
"They were not happy with his performance and they saw this as the perfect opportunity to make him leave."
England will be managed by caretaker Stuart Pearce in their friendly against Holland later this month.
While it's unlikely that the man responsible for the infamous 'Hand of God' goal in the 1986 World Cup would ever receive the offer, the 51-year-old affirmed that he would 'absolutely not' accept the now-vacant England coaching position.
Maradona did, however, express interest in managing former Argentinian club Boca Juniors once current manager Juilo Falcioni steps down, while continuing to deny that he has been approached for the vacant UAE coaching position.