However, concerns over a knee injury prompted the deal to be held up, allowing Wigan to nip in and take King to the JJB Stadium.
"I wanted Marlon as a player," said Hodgson on Sky Sports News. "I met him and was happy to work with him at the club.
"Then, two aspects were out of my hands, ie the medical. First our staff, and then Mohamed Al Fayed's personal physician looked at the player, and then the negotiations with the player with regard to his personal contract.
"I believe that some sort of deal had been agreed between Fulham Football Club and Watford before that came about, and the information I was given, quite simply, was that the personal physician of Mohamed Al Fayed was not prepared to give a guarantee given the injury that it would not reoccur."
Hodgson added: "He's a good player and I'm sure he'll do well for Wigan, and I wish him well there.
"As far as I'm concerned I quite happily accepted the facts as they were presented to me and I have been moving on with other transfer targets since then, and as soon as it was made clear to me that Marlon would not be a viable proposition."