The Three Lions play two friendlies having recently qualified for the World Cup in Brazil next year, with Hodgson's men set to face both Chile and Germany in preparation for the tournament.
"They are a very good team and will offer a major surprise to people who don't know a lot about them or South American football," said Hodgson, according to the FA's official website.
"Germany won't surprise anyone in the same way as Spain, Italy or France don't because we see their players all the time, whereas Chile is a South American side and we don't follow their qualifiers or their individuals to the same extent.
"But we've looked at them, we've studied them and have been unbelievable impressed by Chile, we think they are a very, very good side."
England face Chile next Friday evening, with Hodgson expected to experiment with his starting XI.