Hodgson is believed to have spoken to the Manchester United defender on Tuesday and told him he would not be going to Poland and Ukraine this summer.
Ferdinand has made no comment on the matter, although it is thought Hodgson's decision may have been shaped more by concerns over the 33-year-old's long-standing back problems.
The news will come as a blow to Ferdinand, who had declared his intention to make himself available this summer, despite obvious complications over his relationship with long-time central defensive colleague John Terry.
The Chelsea man will face a court case later this year after being charged with making comments of a racist nature to Ferdinand's brother Anton during the Blues Premier League encounter with QPR at Loftus Road last October. Terry denies the charges.
It is thought Terry will be part of the England squad, along with club colleague Frank Lampard.