Hodgson has been with the club since December 2007 and last season he led the club to a Europa league place
Hodgson says that talks over a new deal are at an advanced stage.
"It's something that has been discussed over a period of time," he said.
"The club have been keen to organise a contract for me to stay longer and I am not averse to the idea.
"I hope something will be sorted out in the near future because they are keen to get something done.
"I have been treated magnificently by the Fulham fans and everyone at Fulham.
"It has been a really good two years. I like the club and the fans and feel it has been reciprocated."