The Arsenal winger injured his knee in the Three Lions' warm-up clash with Ecuador, but has returned to training in the past week.
However, the 20-year-old has not made sufficient progress in his recovery to take on Oscar Tabarez's side in Sao Paulo.
"He's not in contention for Uruguay but he will take part in the next full training session," Hodgson told reporters.
"At the limit, we could have taken a chance with him but it'll be better to use the four days before the Costa Rica game to train with the team.
"His injury has responded very well to treatment and I don't think we'll put him into the firing line before he has some training sessions with the team."
England take on Uruguay in their Group D clash later today.