Hodgson signed a contract Friday until the end of next season, filling the vacancy created last week when the central England club put Roberto Di Matteo on "gardening leave" after 13 defeats in 18 games. Hodgson will try to duplicate his 2008 feat of saving Fulham from relegation.
Hodgson, who has coached in seven countries and led three national teams, joined Fulham midway through the 2007-08 season and led the small west London club to safety with four wins in its last five games.
The following season he guided Fulham to its best finish of seventh place. He was voted manager of the year for last season by the League Managers Association for taking the Cottagers to the Europa League final.