The Three Lions will meet La Celeste on June 19 in Sao Paulo, with Suarez widely tipped to star at the Brazil tournament.
The Liverpool forward has enjoyed a remarkable campaign at Anfield, winning both the PFA and LMA Player of the Year awards after plundering 31 Premier League goals for the Reds.
The goal haul equaled the record jointly held by Cristiano Ronaldo and Alan Shearer for a 38-game season, and his achievement was made all the more remarkable by the fact that he missed the first five games through suspension.
Speaking to Sky Sports, Saunders, who played for the Reds during the 1991-1992 campaign, backed Suarez to worry the Three Lions in the build-up to the game.
He said: "Unfortunately [for England], Uruguay will have Suarez playing for them, so he might have an impact. I don't think anyone likes playing against him.
"He's going to go up against those centre-backs and they're not going to be sleeping the night before the game."
“I think they will [make their mark], they’ve done brilliant," he added. "Sturridge has done better than everybody thought.
“The two English lads have done brilliant this season. Sterling has been magnificent this season, and Sturridge has done better than everybody thought.”
Sturridge finished second in the Premier League's scoring charts with 21 goals, while Sterling was crowned as the club's Young Player of the Season after netting nine times.