The Three Lions boss, whose side exited Euro 2012 on penalties, would like to see spot-kicks introduced at the end of 90 minutes if international friendlies finish as a draw
The Three Lions have the worst shootout record in international football, with a success rate of just 17 per cent, and were knocked out of Euro 2012 by Italy on spot-kicks.
Hodgson believes practicing penalties in training does not replicate the pressure of a match situation and would like to see the idea introduced.
"It is a very good idea," he told reporters. "We might be able to agree with one of our opponents if the game is a draw that we have a penalty shootout."
The 65-year-old added to Sky Sports: "At least then there is a lot more relevance to a competition at the end of a friendly in front of a big crowd than there is when you are taking penalties day after day in training and watching players quite happily whizz them into the back of the net. And then you have got that long walk with a big crowd."
As well as Euro 2012, England have also suffered penalty shootout heartache at World Cups in 1990, 1998 and 2006, and European Championships in 1996 and 2004. Their only success came in the quarter-final of Euro '96 against Spain.