Ward said that Sterling would not sign a new contract with the Reds, not even for £900,000-a-week, which has prompted even further doubt regarding his Anfield future.
Concerning Sterling's current situation, Three Lions boss Hodgson was quick to back the promising youngster who he selected in his squad for next month's friendly with the Republic of Ireland and the Euro2016 qualifier with Slovenia.
"I trust him implicitly," Hodgson said. "I think he's a very important person and a very important player for England going forward. I'll be very disappointed if he doesn't continue to kick on and get even better as he gets older.
"And I really do sympathise with these players who, if you like, have got to live their lives under scrutiny - sometimes of their making, sometimes of other people's making - and they've got to deal with it.
"I worry for all these young players, to be honest. They become stars very quickly. Their period of potential stardom doesn't last for very long these days. Sometimes, a few games in the Premier League and you are a star.
"We should never forget we're dealing with very young people. I believe from what I know of Raheem that he's strong enough to compartmentalise his life - from this side to what happens on the field of play, which is what interests me."