The Liverpool striker, who has been carrying a thigh injury, trained with his England team-mates for 45 minutes on Monday morning before he left the training field with physio Steve Kemp.
But Hodgson told Sky Sports News: "He's fine. Last week he obviously couldn't take much part in training but his injury, which he brought with him from his club, is improving all the time.
"The reason he came off after two sectors - if you like - of the game we were playing this morning ,was to give Rickie Lambert a chance also playing at centre-forward because there's a good chance, and we want to see him play tomorrow night as well as Daniel Sturridge."
The good news for Hodgson is that captain Steven Gerrard, Lambert and defender Kyle Walker all trained despite missing the defeat to Chile last week through injury.
Jack Wilshere was also present despite suffering a dead calf at Wembley last Friday.
England and Germany meet for the first time since the 2010 World Cup, with Hodgson's men bidding to show that they have come a long way since that 4-1 last-16 defeat in Bloemfontein.
Hodgson confirmed the team which will be playing on Tuesday night as he named Joe Hart in goal, Walker, Chris Smalling, Phil Jagielka, Ashley Cole, Adam Lallana, Gerrard, Tom Cleverley, Andros Townsend, Wayne Rooney and Sturridge as they look to bounce back from a 2-0 defeat to Chile at Wembley on Friday night.
Lallane keeps his spot after making his debut in the defeat on Friday, while Hodgson confirmed he is fully behind goalkeeper Joe Hart, who will start at Wembley.
For the first home international since 2009, Hart turned up at Wembley on Friday night and took a place on the substitutes' bench rather than on the pitch.
Being among the replacements has become a common feature for Hart at club level recently.
After a series of blunders for Manchester City, manager Manuel Pellegrini opted to drop the 26-year-old.
But Hodgson backed his stopper, saying of the setback at City: "I'm sure he'll respond very well. It's not my business, his club football career and he's a proud man, he's very pleased to be playing for England and he's done well for us.
"We've had no cause to doubt him during these very important World Cup games we've had.
"In 14 games, we're unbeaten and he's only let in seven or eight goals in those 14 and I think he's entitled to feel confident to pull on the England jersey.
"We're all all behind him, we all think he's a very good goalkeeper and we expect him to play well tomorrow night."
England team to face Germany: Hart, Walker, Smalling, Jagielka, Cole, Lallana, Gerrard, Cleverley, Townsend, Rooney, Sturridge.