Loftus-Cheek put pen to paper at Craven Cottage earlier this month on a loan deal for the remainder of the 2020/21 campaign.
Hodgson’s Eagles will face Fulham in their next Premier League outing and could potentially be locked in a battle with Loftus-Cheek in midfield.
The 71-year-old revealed that Loftus-Cheek is a player who is highly rated at Crystal Palace and feels Fulham have done outstanding business to snap him up.
Loftus-Cheek spent the 2017/18 season on loan at Selhurst Park and appears to have left a lasting impression.
“Ruben Loftus-Cheek is an outstanding signing for Fulham and he’s a player we think very highly of here”, Hodgson told a press conference.
And looking towards the Cottagers, he added: “I’m expecting them [Fulham] to build on the Sheffield United performance.”
Loftus-Cheek clocked up 81 minutes against the Blades at Bramall Lane and will now hope to mark his home debut with a win against Crystal Palace.