Former Chelsea man Lampard - currently on loan at Manchester City from newly formed MLS franchise New York City - brought the curtain down on a 15-year England career that saw him score 29 goals in 106 appearances.
And Hodgson was quick to hail the contribution of the 36-year-old, who made his debut against Belgium in 1999.
"Frank Lampard has been a superb representative of the English game - both as a player on the pitch and an ambassador off it," he said. "To reach in excess of 100 international caps is something very few professionals achieve and he is in exalted company.
"He has served the national team quite brilliantly during his 15-year international career."
But Hodgson revealed that he had been aware of Lampard's plans for some time.
"I've been aware since discussions in Brazil that Frank was considering his England future," he added. "I spoke to him since his loan to Manchester City about the possibility of him retiring, primarily due to the fact that he's taken on new commitments both here and abroad.
"I know it's not a decision he's taken lightly and, as with Steven Gerrard's decision, I promised Frank that I would accept his choice with good grace and not try to change his mind.
"It is with regret that I accept and understand the decision he's made.
"I wish him the best of luck with Manchester City and New York City and I’d like to thank him for all the help he's provided for me during my time as England manager."
