Dominic Solanke is set to join Crystal Palace on loan for the remainder of the season after undergoing a medical, reports say.
The transfer switch will give Solanke some much needed game time, but the striker remains in Jurgen Klopps long-term plans at Liverpool.
Hodgson has made no secret of his desire to sign Solanke, as Palace search for a frontman that can help keep the Eagles in the top flight.
Its no secret hes a target, said Hodgson. Hes a proven goalscorer through all the age groups.
Palace are currently four points clear of the relegation zone, and Solanke has picked the London side ahead of offers from Brighton, Huddersfield, Bournemouth and Steven Gerrards Rangers.
While Solanke is on the verge of signing for Palace, Nathaniel Clyne could too be on the move this January.
The right-back has found it difficult to dislodge youngster Trent Alexander-Arnold from Liverpools defence after a long period out due to injury.
Klopp is still easing Clyne back into action, but Cardiff boss Neil Warnock has now declared he wants to sign the former Southampton star.
He said: We spoke about Clyne months ago, but then he got back into the Liverpool team against Manchester United, then they had a few injuries, so things change.
But honestly, weve got nothing set for any position at the moment, Im hoping that changes this week.
The transfer window opens on 1 January, with Liverpool unlikely to make any major additions to their squad.
While there could be some outgoings, Liverpool are top of the league table and Klopp is happy with his current team.