The 39-year-old currently splits his time between carrying out coaching duties with Hodgson on the international stage and working as a pundit for Sky Sports.
According to The Express, some figures within the Football Association believe that Neville, who is currently with England at the World Cup in Brazil, needs to make a decision regarding his career path.
However, Hodgson believes that there is nothing wrong with Neville juggling coaching and punditry for the time being.
"The first thing I'd say to him is, 'don't be in too much of a rush to do anything'," Hodgson is quoted as saying. "Having a long career in football gets harder and harder.
"The number of jobs available vis a vis, the amount of time people spend in those jobs gets less and less, so I certainly wouldn't advise him necessarily to jump at the first opportunity to do coaching or management."
England are in danger of becoming the first Three Lions team in 56 years to exit the World Cup without winning a game, ahead of tonight's final Group D match against Costa Rica.