Wan-Bissaka is set to face off against his former club with Manchester United on Saturday.
Hodgson said: “I suppose we were hoping, deep down, that he might think, 'I'll give it another year or two at Crystal Palace first and then hope to move'. But it's an unrealistic hope.
“When the really big clubs in Europe and the world come knocking at your door and say to you, 'We think you're a good player, we think you're ready, we think you're going to be our right-back in the matches ahead' I don't think there's very much to do other than wish the player well and hope the clubs will reach an honest agreement.
“That's what the sticking point can be. How serious are the club looking at him and are they prepared to pay the market value? In this case, it seemed to me there wasn't a massive dilemma in that respect and the two clubs came to an agreement reasonably quickly and certainly reasonably amicably."