The lack of homegrown talent has been a growing concern for the Three Lions for a number of years now, and is increasingly worrying during a tense World Cup 2014 qualifying campaign.
With the number of players from overseas being recruited by Premier League clubs, Hodgson is adamant that it restricts his options on the international scene.
"Quite a few of the games I go to do not have any English players," Hodgson told Sky Sports News.
"So, one has to be very careful these days when talking about the Premier League and talking about the Englishness of it, because more than two thirds of the players in the league are not English.
"We have one of the lowest number of homegrown players to choose from in all the leagues, which, if you are national team manager, is not a great advantage, to be frank."
Hodgson has been in charge of England since May 2012.