Alli was Tottenham's two goal hero in the 3-1 Champions League win over Real Madrid and although Hodgson's Crystal Palace side managed to keep the 21-year-old at bay on when the sides met at Wembley on Sunday, they were defeated 1-0 courtesy of a goal from Heung Min-Son.
The former England boss says he would like to see Alli stay in the Premier League but admits he will aready be the subject of bids from a number of top clubs.
"There will have been offers already," said Hodgson.
"Tottenham won't want to let him go and it would only be one of the top echelon of clubs who could even consider buying him.
"I'm rather hoping he won't be looking for such a move but there is no doubt that Real Madrid, Barcelona, and Bayern Munich have a big pull.
"If you talk about the top midfielders in Europe now, he would be in the reckoning."