The 69-year-old has been seconded to Australia – but it is understood he is NOT under consideration for a coaching role, according to the Birmingham Mail.
The Australian side are currently under the stewardship of caretaker coach Michael Valkanis following John van ‘t Schip’s departure.
But club bosses reportedly want the former West Brom manager to spend time with the coaching set-up, sharing his experience and acumen.
A keen friendship with club executive Brian Marwood has reportedly led to the move.
Coach Valkanis said on Thursday: “That’s why it’s so good being a part of this group, the City Football Group.
“It’s great when you get football people together.
“A 10-minute conversation [today] ended up being one hour.
“We’re so lucky to have him here … he’s a man with a wealth of experience that can help.”
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Hodgson stood down as England manager after last season’s poor Euro 2016 tournament and spoke in December about a route back into the game.
Hodgson told the Daily Mail in December: “Football is very much in my blood and very much part of my life.
“I want to be involved in football. I feel good. If an offer comes along that I think is the right one for me and for the club, of course I shall be happy to take it.
“When I’m not in some way actively involved I feel a part of my life is not being fulfilled.”