Terry voluntarily ended his England career in September 2012 but, following successive home defeats by Chile and Germany last November, and Terry's excellent form for Chelsea, there have been calls for his return to the international set-up.
But Hodgson told reporters at Wembley: "John has retired. As far as I'm concerned, that is the situation and there is no point me discussing retired players.
"We have got along without him for the whole of the qualification and quite a few friendly matches, and we'll have to get along without him in the future. As far as I'm concerned, retirement is retirement.
"You respect that when players retire, we move on. We moved on after our first qualification game when John Terry limped off and since that time we have chosen the players who are available, who have represented us well in my opinion, so we will continue with that."
Terry, 33, won the first of his 78 caps in June 2003 and succeeded David Beckham as England's captain in 2006. He lost the captaincy for the first time in February 2010 after allegations about his private life and regained it a year later.
The FA then took the armband away from him before the 2012 European Championship - prompting England manager Fabio Capello to resign - with Terry facing a court case over alleged racial abuse of the Queens Park Rangers player Anton Ferdinand.
Terry was found not guilty but was still charged separately by the FA, and retired from international football in protest. The FA's independent commission found him guilty, banning him for four matches.
Meanwhile, Hodgson insists Terry's Chelsea team-mate Ashley Cole remains part of his World Cup plans despite struggling to hold down a regular first-team spot under Jose Mourinho.
With the Portuguese preferring Cesar Azpilicueta at left-back, Cole's playing time has been limited casting doubt over his participation at Brazil this summer.
"Full-backs are like goalkeeperes either you play or someone takes your place," said Hodgson. "We know what Ashley can do we know how fit he keeps himself, we know how experienced he is.
"So I wouldn't write Ashley Cole out of any plans simply because he wasn't playing in his club team. But, like anyone else, the competition for his place gets stronger all the time and I will have a decision to make."
And Hodgson is adamant playing outside the Barclays Premier League will not affect former Tottenham striker Jermain Defoe's chances of making his final squad.
"He will be playing but he will be playing in a league a long way from the top league over here but that won't change a thing as far as I am concerned," he said.
"I know what Jermain can do and we will pick him on those merits. If he doesn't get picked it will be because I feel on this occasion there wasn't space because I preferred other players.
"When Jermain comes with an England team I know he is a very reliable player and he has been a wonderful servant during the two years I have been with England."