There had been speculation that Terry could be in line for and England recall given his impressive form for the Blues this term, but Hodgson moved to rule out such an option earlier this week.
And while Mourinho still believes the Three Lions could use Terry, he says Hodgson showed strong leadership in making his decision public at this point.
He said: "The door is closed. Roy was very clear.
"He did well if that is what he really wants. He finished the discussion.
"From a leadership point of view it was very direct, very strong."
Terry is yet to sign a new deal at Chelsea despite his impressive return to form under Mourinho, and while his club future remains up in the air, it seems that his international career is not definitively over.