Gerrard became the fourth most-capped England player on Tuesday when he led his country to the 2-0 win over Poland which secured World Cup qualification.
The 33-year-old, who sealed the victory with a late strike, has been a rock for Hodgson during the 18 months he has been in charge of the national side.
Hodgson saw Gerrard's leadership qualities when he managed Liverpool and he did not hesitate in handing him the captaincy when he became England manager.
Eighteen months on and Hodgson has no doubt he picked the right man for the job.
"I can't speak highly enough of him," the England boss said.
"He has got a fantastic quality, Steven.
"I talk a lot and I don't often say things that are particularly memorable, but every times he opens his mouth he says something that I often think 'I wish I would have said that!'
"The other great quality is that he leads by example. When I got the job and I told him I would like him to be captain, he said he would take it seriously, do his best and help wherever he could.
"That is exactly what he has delivered over the last 18 months.
"I think everyone looks up to him. He doesn't have to scream or shout, he just has to do what he does on the field.
"He is very supportive of the players, he urges them on. He is not a screamer and shouter but he talks to them on and off the field.
"No one should be more proud of this qualifying campaign we have had than him."
Gerrard admits the tournament in Brazil will be his final World Cup and Hodgson knows the captain will not be satisfied unless he oversees a successful campaign.
Hodgson added: "I think that he is going to be desperate that when he leaves Brazil he will leave behind not only the memories of a good qualifying campaign but also of a good tournament campaign."