Wood played with Dallaglio on both the 1997 tour of South Africa and 2001 trip to Australia believes the former England skipper's international retirement last year should be no bar to his inclusion on the tour.
"What you do with the Lions is pick the best squad you can," Wood explained.
"Lawrence is still one of the most consistent number eights around.
"You know you can depend on him and you also know what he will bring. That for me is a pointer to selection."
Experience will be a key factor in New Zealand, a quality Dallaglio himself would certainly bring to the party after two Lions tours, two stints as England captain and a successful World Cup.
"Seven weeks is a real challenge for a modern-day rugby player. Every minute of every day you will be challenged," said Dallaglio.
"It is about taking tourists as well as good rugby players, people who can bond the squad together, and that comes from experience."