The Chelsea captain has decided to step down from Three Lions duty prior to the knowledge of his Football Association hearing for alleged racist abuse towards QPR’s Anton Ferdinand.
Terry said his position on the England team had been questioned and found it untenable to continue playing – a decision which has been met with reluctance by Hodgson.
"I'd like to thank John Terry for his commitment to the England team since I became manager,” read Hodgson’s statement.
"I am of course disappointed to lose a player of John's international experience and exceptional ability.
"I have enjoyed a good relationship with John during my time as England manager and I reluctantly accept his decision. I can also confirm that he had the courtesy to call me prior to announcing his retirement from the England team.
"I'd like to wish John well for the future with Chelsea."