Tottenham's Harry Redknapp had been bookmakers' favourite to lead England since Fabio Capello quit in February but the Football Association chose not to interview him and has instead begun talks with West Bromwich Albion's Hodgson.
The 64-year-old Hodgson, who has won a total of eight league titles in two countries with three clubs and coached the national teams of Switzerland, Finland and the United Arab Emirates, met with Football Association officials on Monday. Hodgson left Wembley Stadium after about four hours of talks.
Britain's famously opinionated newspapers widely predicted that Redknapp would be hired but the Spurs manager said Monday that he was happy to continue his work at a club he is trying to guide into the Champions League for a second time.
Capello's resignation and Redknapp's elevation by the media coincided with a dramatic loss in form for Tottenham, which won just once in nine matches before returning to the top four of the Premier League with Sunday's 2-0 win over Blackburn.
"I'm very happy to be doing what I am at Tottenham," Redknapp said. "I suppose it's all dragged on a bit but it's no problem and I'll just get on with my job here and we are looking for a good end to the season.
"I like Roy, he's a top man and a good guy and I wish him great success."
Redknapp previously said the England coaching role was the "ultimate" job for an English coach to aim for, but never said he would take it if it was offered and repeatedly praised Tottenham for backing him during a criminal trial for tax evasion.
Redknapp was cleared of the charges on the same day Capello quit.
With the England vacancy dominating agendas, reporters were eventually banned by Tottenham from asking Redknapp questions about the job.
"Life couldn't be better," Redknapp told Sky Sports TV. "The sun is shining, I'm in good health and I'm a very lucky man."
Although Redknapp has transformed Tottenham since inheriting a relegation-threatened squad in October 2008, the 2008 FA Cup title with Portsmouth is his only major honour in a 30-year managerial career.
Hodgson guided unheralded Fulham to the 2010 Europa League final — beating Juventus along the way — and was voted manager of the year by his fellow coaches for leading the west London club to a record-high position of seventh in the Premier League.