However, the 17-year-old will join up with Hodgson's squad for next week's friendly with Sweden.
The 65-year-old said that Sterling is fully deserving of his chance following a promising start to his career in a red shirt.
"He's in the squad on merit and because I think he's done extremely well for Liverpool," said Hodgson.
"He burst onto the scene at the start of the season and has been ever-present in the Liverpool team in recent games, playing a very exciting part.
"It has nothing to do with him being courted by anybody else. My views on that subject are clear, as far as I'm concerned a player should have the right to choose who he wants to play for."
Sterling has started nine Premier League games for Liverpool this season.