Foster has impressed outgoing Baggies boss Hodgson while on loan at West Brom from Birmingham this season, but the 29-year-old has decided against reversing the decision he made to end his England career 12 months ago.
When asking if he was coming out of international retirement, Foster said: "I'm still exactly the same. I've had a very good chat with the boss this week and he has told me of his plans and stuff.
"I've said all along my best form has been since I retired from England and I feel my body gets a good rest, and I feel it needs that rest as well.
"Not only that, the fact I've got a young family now, and the family is very big with me. I've got a three- and a four-year-old and they do take up a lot of my time.
"I make no secret, I miss them when I'm away with England. For me, I prefer to spend that time with the family than being away from them."
Foster added: "Roy tried hard to persuade me to change my mind. I get on with him so well and he is a fantastic manager. You learn so much off him.
"I know he will do a fantastic job for England.
"But he totally understood my reasons why and was very respectful of that and understood my decision and my way of thinking."
Foster missed the Baggies' final game of the campaign against Arsenal at The Hawthorns with a groin injury.