The 24-year-old was included in Roy Hodgson's preliminary squad for the tournament after a great spell of form that helped Newcastle keep the fight to stay in the Premier League going until the final weeks of this past campaign.
But the former Tottenham man was one of three players that were left out when Hodgson named his final squad for the competition, and Dyer believes that he has been unfortunate to miss out, before suggesting that his form may have not been given the credit it deserved when the decision was being made.
"I do feel sorry for Andros Townsend because I think he was unlucky - but, with England squads, people get picked on reputation as well," he told the Chronicle.
"What they can do, rather than necessarily what they are doing."
Although the former Magpies man has suggested that reputation has played a part in Townsend's omission, it was perhaps that reputation that should have seen him given a chance.
Despite often struggling for consistency during his time at White Hart Lane, the wide man was frequently included in Hodgson's squads, and he repaid that faith on several occasions with the kind of performances he was often unable to replicate for his club.
And having impressed in a Newcastle team that ultimately failed to stay up, it is perhaps surprising that Hodgson felt that taking Townsend was too much of a gamble after previously picking him when his form for Spurs arguably did not deserve international recognition.