Hodgson deployed his side with a holding midfielder in their clash against San Marino, and, although Hoddle feels that Jack Wilshere performed well in the role, he believes that Huddlestone, 27, would be a better fit.
Hoddle told the Daily Mail: "Roy has settled on the diamond formation as one way of playing and, as such, that needs a good holding player. Jack Wilshere did do really well there on Thursday night, though it is difficult to judge against San Marino when you have so much time on the ball. It is not his natural game.
"On Thursday night, both Ian Wright and I came up with the name of Tom Huddlestone as an alternative. He is not currently in favour. He has just four caps and has been used only once by Roy, as a substitute in a friendly against Sweden.
"As a sitting player, there are few Englishmen who can match Huddlestone. He does that job of screening the back four and he has a range of passing that few can match."
Huddlestone's last cap for England came against Sweden in 2012.