Eurosport - Tue, 27 Jul 15:35:00 2010
The Argentina captain has been the subject of intense speculation for much of the summer, which has escalated since former Reds boss Rafael Benitez left the club to take over at Internazionale.
Mascherano had not spoken with his new boss during his post-World Cup break, with Hodgson reduced to leaving several messages when he called him in Argentina.
However, after returning to training this week, Mascherano held talks with Hodgson and confirmed he wants to leave.
Hodgson said: "Yes, he wants to leave the club. He made that perfectly clear. I think he wanted to leave a year ago.
"He wants to leave now but he has a contract, and I expect him to honour that contract. I expect him to be a Liverpool player until the day the club chooses to accept an offer for him."
Mascherano has made 138 appearances for Liverpool since arriving from West Ham United in 2007.
He said: "As far as I know he is looking forward to coming back here; he is back on Monday. He is enjoying a holiday - a well-deserved break as he has not had one for three years.
"He is spending a lot of time with his family, keeping a low profile and as far as I know he is not really speaking to anyone.
"But he has told us that he is looking forward to Monday, looking forward to getting back to work and looking forward to playing for Liverpool next season.
"That is what I know so other reports, I would suggest, are erroneous."
Club captain Steven Gerrard has already confirmed he will not be leaving the club.