Earlier this month, the Canaries sacked manager Alex Neil, and former England boss Hodgson has been linked as a replacement for the Scot.
However, Balls has suggested that Hodgson will not be given the spot in the Carrow Road dugout, nor will be be appointed as the club's sporting director, despite his links to Delia Smith and Michael Wynn Jones.
He is quoted by The Sun as saying: "Roy is a great coach with a great track record and someone with huge experience. Michael and Delia know him very well and we have talked to a lot of people in the game, both inside and outside.
"Will Delia and Michael have spoken to Roy? Of course they will have done. They will talk to people who they respect. He is not in any way different to the five or 10 people we have spoken to during this process in the past few weeks.
"He is not a candidate for the sporting director. He has not played any formal role. He is not part of the consultative process."
Norwich currently sit in eighth position in the Championship table, five points adrift of a place in the playoffs.