Hodgson has been without a head coaching role since his contract with the Three Lions expired following their shock Euro 2016 exit at the hands of Iceland, but the 69-year-old has taken up an advisory role with City Football Group (CFG), which has led him to Australia.
CFG executive Brian Marwood is friends with Hodgson and convinced him to spend a month in Melbourne.
"That's why it's so good being a part of this group, the City Football Group," City coach Michael Valkanis was quoted as saying by AAP on Thursday.
"It's great when you get football people together. A 10-minute conversation (today) ended up being one hour.
"We're so lucky to have him here... he's a man with a wealth of experience that can help."
Hodgson's coaching career began in over 40 years ago with Swedish club Halmstads BK and has seen him work in eight different countries.
Melbourne City are the reigning FFA Cup winners in Australia and sit fourth in the A-League with two rounds remaining plus finals in the 2016-17 campaign.