Hodgson pointed to Chelsea's against-the-odds Champions League triumph last season, when they knocked out Barcelona and then beat Bayern Munich on penalties, as evidence that the fancied sides can be beaten.
He told Sportsweek on Radio Five Live: "You could say we are far from being favourites (for the World Cup) so therefore it's (winning it) not a likelihood. But you've got to shy away from 'impossible' in football.
"There are plenty of events that we could point to in footballing terms that you could have said were impossible, but people have done it.
"It wasn't likely that Chelsea would become champions of Europe, especially having to change their manager in mid-stream but they did.
"That was by beating Barcelona and Bayern Munich, two of the best teams in Europe along the way, so I'd like to keep that dream alive."
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