Wenger has recently been met with criticism over transfers and performances, but the long-serving manager is expected to remain at the Emirates Stadium for at least the next 18 months.
Palace travel to North London on Saturday afternoon fancied to get a result against their hosts, but Hodgson has spoken out about his admiration for his opposite number.
Hodgson is quoted by the London Evening Standard as saying: "I think there are managers like Arsene who deserve the utmost respect because of what he's done in the game of football, not least here in England.
"He's a record-breaker in almost every category and basically the only person in my era who could really hold his hand up and say 'this guy and I are in the same category' is Alex Ferguson.
"He's been criticised many times in the past but he could lose the next 50 games he ever plays and it certainly wouldn't change one bit my respect for him as a manager, my respect for him as a person and in particular my respect for the job he's done at Arsenal, which is something quite outstanding."
Palace have suffered just one defeat in their last dozen fixtures in the top flight, with that setback coming against Arsenal in December.