Alli, 21, has been criticised on several occasions for simulation, including after a clash against Liverpool earlier this month.
However, his former England boss Hodgson, whose team host Spurs on Sunday, said he did not believe Alli dived.
"We do our team talk about Tottenham and discuss their players but we certainly don't discuss Dele Alli and diving because I don't think he does. Simple as that," he said, via the Mirror.
Hodgson believes Alli's style of play means he is more likely to go to ground, but he insisted the 22-time England international did not dive.
"He runs with the ball and gets knocked over. In the time I was working with him I saw no aspects to his play or to his character that suggested cheating in any way whatsoever," he said.
"Yes, he will get knocked over in the penalty area, he'll get fouled. Some will be given as penalties and some won't be, and when the penalty isn't given, people will say he dived, that's the nature of football today.
"But he's no cheat and he doesn't dive, that's for sure."