The Three Lions boss wants the nation's homegrown footballers to work harder if they are to compete with foreign players and become regulars in their club sides
The former Liverpool manager said that clubs will always look to bring in foreign players therefore the onus is on homegrown stars to impress their managers so they no longer feel the need to look elsewhere.
"Clubs will do what they have to do and I can't expect that a manager who is under pressure to get results is thinking long-term for the benefits of the English national side," Hodgson said at the Institute Of Directors' Winter Lunch.
"If he thinks his interests are best served by getting a player from Montenegro, Russia or Israel, they're entitled to do that.
"Rather than complain that there are a lot of foreign players, let’s turn it on its head and make certain that our players do better.
"Take Alex Oxlade-Chamberlain for example, who plays some games but not others. He has got to become so good that Arsene Wenger doesn't want to look elsewhere.
"That's what I've got to hope for and that's got to be their ambition.”
Since taking over the helm of the national side, Hodgson has been happy to call up youngsters such as Raheem Sterling, Steven Caulker, Carl Jenkinson and Wilfried Zaha but he says finding the right blend between youth and experience is difficult.
"You can't constantly look towards the future, because you need to win in the present,” he added.
"But one of my concerns for England has always been that we're not trying to win in the present, we're trying to win in the past and we can't do that.
"I know there's 1966 and that it's 50 years and that we've failed here and there and missed penalty shoot-outs, but unfortunately there's not very much I can do now to change anything that's historical.
"You can't turn back the clock and you can't win yesterday. You can only win today and while winning today, you can only have an eye on how we can win tomorrow.”