The Liverpool winger was red-carded for a tackle on Antonio Valencia last week, a challenge that was acknowledged as reckless by Hodgson and brought a furious reaction from Valencia - who was also sent off.
Hodgson has since said the incident will not harm Sterling's chances but Hoddle said on Sunday that Hodgson must now wonder how much he can trust the 19-year-old.
"He would certainly have thought about starting him on Saturday (in the friendly against Honduras) with a view to playing him against Italy.
"Now Roy is going to worry about how much he can now trust Sterling," Hoddle said in a column for bookmaker William Hill.
"The thought of going down to 10 men against Italy doesn't bear thinking about, especially when the game in Manaus will be won or lost in the final 20 minutes when fatigue sets in.
"The question for the England manager now is whether he can take the risk with Sterling against the wily Italians."
- Sports & Recreation
- Antonio Valencia