The pair worked together at Inter Milan between 1995 and 1996.
"Roy Hodgson destroyed me," Carlos told Marca.
"He made me play in the centre of midfield. I wasn't going to get a chance to play for Brazil like that and there was a Copa America in 1997.
"It's not that we got on badly, it's that he didn't know much about football."
He says that Hodgson's use of him meant he had little choice but to leave, as he linked up with a legendary Italian boss in Spain.
"I spoke with [Inter chairman Massimo] Moratti and I asked him to leave," he continued.
"I went to Madrid for [coach Fabio] Capello, he was the most important coach in my life."