The news comes the day after Rio Ferdinand announced his retirement from Three Lions duty, a move Terry took last September after being found guilty of racially abusing Rio's brother Anton by the Football Association.
Hodgson, though, is keen to further blood younger talent rather than again rely on his former captain ahead of next year's World Cup but kept the door open for a possible return.
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"I’m not going to call on younger players necessarily, but to get behind the players I think will be the ones to take us to Brazil and do well for us.”
Hodgson is expected to call up Gary Cahill, Phil Jagielka, Joleon Lescott and Phil Jones for central-defensive cover for the forthcoming friendly games against the Republic of Ireland and Brazil.
And he was quick to assert his belief in England's younger players, and the need to look to the future for the team.
Hodgson continued: "We have a lot of talented players. [Jack] Wilshere has a great future. [Theo] Walcott, [Alex] Oxlade-Chamberlain, [Tom] Cleverley, [Danny] Welbeck, Jones, [Chris] Smalling plus the Under-21 team with [Jordan] Henderson who has come on. [Wilfried] Zaha, [Raheem] Sterling, [Nathaniel] Chalobah, [Tom] Ince.
"We aren’t short, we don’t need to keep shackling ourselves with what we have done in the past with these great players. We have to take a chance elsewhere."