Hodgson believes his decision has been vindicated by central defender Terry's performances on the pitch and behaviour off it in Poland and Ukraine.
"John has been very good off the field as well," said Hodgson. "As a coach, you have to be very careful taking on board these rumours, these fears, these suggestions.
"So it is important you choose the players you think are the right players and you work with them and you get the experience for yourself.
"He has been a top-class professional and excellent around the place. Like Steven Gerrard, he has done an awfully good job helping me and my coaching staff get messages across to the players."