The Football Association’s decision to strip Terry of the England captaincy in February following his alleged racial abuse of Queens Park Rangers defender Anton Ferdinand led to coach Fabio Capello quitting.
Hodgson, who became coach two weeks ago, accepts that the racism issue could hang over Terry especially if England’s players or fans are the subject of abuse at the June 8-July 1 tournament in Poland and Ukraine.
"There’s no doubt that the issue of racism … hooliganism and violence in Ukraine is obviously a concern for us all — not least the supporters who go over there and risk maybe getting beaten up, or if they don’t happen to be white, subjected to a lot of abuse," Hodgson said. "So of course it’s a concern. But I am convinced that John Terry is a person who will be able to handle these matters. He’s not a person who’s not had any criticism in his life.