There had been speculation that Terry, who has performed to an exemplary standard for Chelsea this season, could be willing to renege on his international retirement and attempt to win a place in Hodgson's squad for Brazil.
Terry retired in September 2012 when the FA persisted with a disciplinary hearing, which it subsequently won, regarding Terry's racial abuse of QPR defender Anton Ferdinand.
But despite the centre-back's wonderful form under Jose Mourinho this year, Hodgson will not try and convince Terry to be a part of his squad for the friendly against Denmark on March 5, or the finals this summer.
"John has retired,'' said Hodgson. "As far as I'm concerned that is the situation. We've got along with 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 the first qualification game when John Terry limped off [against Moldova]. Since that time we have got on with it and have chosen the players who are available, who have represented us well in my opinion and so we'll continue with that.''
Terry won 78 England caps and had two separate stints as captain, the first of which began in 2006.
He lost the captaincy in February 2010 following allegations he had an affair with team-mate Wayne Bridge's former partner, and the armband was taken off him once again in February 2012 after it became clear he was to stand trial for racially abusing Ferdinand.
Terry was found not guilty in court, though an FA panel banned him for four games after conducting its own investigation.