Hodgson admits progress on the pitch will be key to persuading both players of a bright future with Liverpool.
"We can sit here and say all the right things, but it is actions Stevie wants, not words," he said. "He wants to see his club striding forward and signing players of a similar quality to himself to play alongside him.
"Of course, he is wise enough to know I cannot give him that guarantee and I wouldn't try and sell him a line like that. He would not respect me if I tried to give him some sort of bull**** line and would see through it right away.
"Where he is concerned, my job is to try and explain that I have come to Liverpool because I want to work with people like Steven Gerrard. I'm also hoping he will have enough loyalty to the club and be interested enough to work with me and see how it develops.
"It is a question of trying to sell myself and what I have in mind for him and hoping he buys into it. He knows he is the heart and soul of this club, alongside Jamie Carragher. They both know their importance to Liverpool. I can only hope that what I say to them and what they feel from the fans and the city and anyone around the club will play a part.
"Without speaking to him, it is difficult for me to say (if he would be interested in Real). I've always seen him as being Liverpool through and through and well on his way to becoming as much a legend as so many others from the past. That has always led me to believe he would remain a Liverpool player and I will be doing my utmost to make sure it works out that way.
"I am preparing for life with Steven Gerrard and all the other top players here. Of course, that includes Torres. We will fight tooth and nail for that. Everyone has heard the chairman (Martin Broughton) say they are not for sale and that applies to Torres, Javier Mascherano and anyone else you care to name.
"I will have a conversation with Fernando as soon as possible. It wouldn't be right to disturb his preparations for the quarter-final against Paraguay, but I'd like to meet him as soon as possible after the World Cup. I want to speak to him face to face and I'm hoping he may return to Spain for a day or two before going on holiday. It could be anywhere, but I'll be there, trying to impress on him why Anfield is the place to be."