The defender will be suspended for the Champions League final after he was sent off in the semi-final second leg for an off-the-ball clash with Barcelona forward Alexis Sanchez.
Hodgson said: "I believe John Terry, especially in the latter part of the season, has played very well.
"I know you'll say he shouldn't have done what did in Barcelona but I'm looking over a longer period that that.
"I think he's played well, I think he played an important part in Chelsea's FA Cup final victory, an important part in their reaching the Champions League final and so therefore I selected him because I think he's the man for job. I'm hoping and believing that he will help us win matches."