Ashton has a rolling contract which comes up for review at the end of the year and the Rugby Football Union's director of elite rugby Rob Andrew has refused to make a decision until after a review of the World Cup campaign has been conducted.
Despite England's exertions in France, Dallaglio believes change is still necessary.
He told BBC's Inside Sport: "There are system changes that need to be made - whether that's personnel is not my decision.
"Everything isn't rosy just because we got to a World Cup final. It's been an interesting couple of weeks.
"There's been no new contracts dished out yet. You need to ask Rob Andrew really - ultimately it's his job to ultimately decide where English rugby goes."
Asked directly whether Ashton should be involved after Christmas, Dallaglio replied: "Brian Ashton turned things around, but then again so have the players and all the coaches.
"I think a review will be done, by the right people. Rob will head it up and I'm sure he'll make the right decisions."