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The 25-year-old midfielder has struggled to secure regular first-team football and has fallen out of favour under three different Tottenham managers.
Alli failed to establish himself under both Jose Mourinho and Nuno Espirito Santo and now faces a similar dilemma under current Tottenham boss Antonio Conte.
The England international, who is under contract with Spurs until 2024, has been heavily linked with a move to Newcastle in the January transfer window.
Alli has made eight Premier League starts in 10 matches and only scored once in the league this season, with the Tottenham star in desperate need to revitalise his stagnating career.
Warnock has urged the Spurs midfielder to leave the north London club and believes Alli could thrive in the right team.
Speaking to talkSPORT, the former Middlesbrough manager said: “He’s got to go.
“I’ll be honest with you, though, when you look at Dele Alli, if you put him in Man City’s team, you would see a different player.
“You’ve got to have a decent backline to start with. Tottenham haven’t had a decent backline for ages.
🔚 “Dele Alli has got to go.”— talkSPORT (@talkSPORT) January 24, 2022
🔵 “If you put Alli in #MCFC’s team you would see a different player.”
😩 “Dele Alli is a good player but he has just gone backwards.”
Neil Warnock believes #THFC’s poor defenders are a massive reason for the decline of Dele Alli’s career. pic.twitter.com/FLEjf0JOLK
“He roves in a No 10 role and he’s as good as owt when he was. But they’re not getting that ball, they’re having to fight for everything to get a look in.
“Because they are not good enough at the back, it opens all the positions. That’s why he’s got to go.
“He will find somewhere as he’s a good player when he’s on, but he’s just gone backwards.”
According to reports, Newcastle have ‘opened talks’ with Tottenham over a potential loan deal for Alli.
Newcastle manager Eddie Howe is keen to add a new midfielder to his squad options ahead of the January window shutting on 31st January.