Dacourt made his final Fulham appearance when appearing as a 73rd minute substitute in the 2-0 home defeat against Everton on Sunday.
"Giles has unfortunately been injured and we haven't had the chance to assess him as we would like," Hodgson told the Sunday Mirror.
"We would not be prepared to pay the amount of money that we would be required to pay at the end of the loan to acquire his services."
"Olivier came here making it clear he would be here only until the end of the season," the Fulham boss added.
"I think he's contemplating retirement now, although I'd hope that's not the case as I think he's got a lot more to offer - although it wouldn't be in England due to his family situation."