The two Crystal Palace players have been standout performers at the club over the last few months.
The Selhurst Park boss has overseen an impressive few months at Palace since returning to the ground that he was a hero at as a player, and though the 54-year-old never won a cap for his country during his career, he feels that there are plenty of options in the current Eagles side that could do a job for Roy Hodgson.
Two in particular deserve to be close to the Three Lions setup, claimed Pardew, as he picked last season's club player of the year Dann and midfielder Puncheon as individuals who are good enough for international football from Palace's English contingent.
"There's five or six players in this squad who could get into the England squad, but Puncheon and Dann lead the way in terms of where they are."
The former Newcastle boss picked 29-year-old Puncheon out as being better than some that have collected England caps in recent times.
"Puncheon is underestimated by a lot of people in the game, he is somebody I know for sure is better than players who have played for England," he added.
Dann was closely linked with Everton by the likes of the Mirror before opting to sign a new contract in South London this summer, and is arguably one of the top English defenders featuring in the Premier League, while Puncheon has impressed over the last three seasons, scoring at least 6 goals in each campaign.