West Brom expect to appoint Steve Clarke as their new manager on Friday, Press Association Sport understands.
Albion have held positive talks with the former Liverpool number two and sources close to the club are confident an appointment will be made before the weekend.
But Clarke is the red hot favourite to succeed Hodgson, who enjoyed 15 successful months at Albion before the call came to succeed Fabio Capello.
Clarke is set to return to work only a couple of days after finalising the terms of the end of his spell at Liverpool with Kenny Dalglish.
Clarke has gained plenty of experience working as number two at Newcastle, Chelsea, West Ham and most recently at Anfield under Dalglish.
But he is believed to be keen to step into management and Albion fit the bill.
Clarke will have a hard act to follow in Hodgson who guided West Brom to a top 10 finish in the Barclays Premier League last season and ensured a third year of top flight football.
But he has worked under the likes of Jose Mourinho, Ruud Gullit, Sir Bobby Robson, Gianfranco Zola and most recently Dalglish and is one of the most respected coaches in the game.