The 28-year old Spaniard, who spent two-and-a-half seasons at Anfield between 2007 and 2009, believes that Hodgson's game style did not suit the Reds whilst Kenny Dalglish's plan has been well accepted by the current squad.
"I think they played maybe too many long balls under Hodgson," said Arbeloa.
"I think Liverpool are the type of team that has to play more football. Technically they have some really good players and they need to play more football.
"I think with Dalglish, who was one of the best players in the history of Liverpool, they look more confident and they improved a lot."