The Three Lions have been drawn alongside Italy and Uruguay in the group stages of this year's tournament and will face the Azzurri in their opening match on June 14.
Hodgson has claimed that his side have the players capable of challenging for the cup and is confident that they can deliver in the big games.
"I'm not ruling out winning it," The Mirror quotes him as saying. "It would be foolish to go there thinking we can't win it or we're only there to make up the numbers. Of course we'll go there thinking of winning it, believing it and working hard to do that.
"But the truth comes when you cross that white line and have 90 minutes to win a game. That's when the truth comes out. Can we play well enough? We have the hope, dream and ambition.
"But to do well, we have to play well, play better than the opponents, for all the players to live up to their reputations. They deserve those big reputations. It's up to them to live up to them and up to us as a coaching team to ensure they're capable of doing that."
Hodgson guided England to the quarter-finals at Euro 2012.