Olsson is set to take part in his first international tournament next month after being named in Sweden coach Erik Hamren's 23-man group, and he will come up against at least one familiar face in the group stages with Hodgson the new England boss.
The 29-year-old defender, who has had a fine season with West Brom, said on the Swedish FA website: "I'm obviously very happy. It's a dream we've had since childhood to be involved in a major championship.
"I feel in good shape and I've performed well at club level throughout the season.
"It had been special to face England anyway because I play there, but it's clear that with Roy as coach it will be even more special."
He added on West Brom's official website: "It's my first major tournament, so it's going to be a thrill. We're going there with the ambition to push through the group. We know it's a difficult task but we're going to give it a go, and I'm really looking forward to it."
Hamren has also included Johan Elmander in his squad after receiving positive news about the experienced striker's fitness. Elmander suffered a foot injury playing for Galatasary at the weekend but tests suggest the former Bolton player could be fit in time for the European Championships.
However, John Guidetti has been omitted as his rehabilitation following an infection will take longer. The 20-year-old Guidetti has been in fine goalscoring form for Feyenoord this season, where he has been on loan from Manchester City.
Sweden begin their Euro 2012 campaign against hosts Ukraine, then take on England and before finishing a clash against France.
Hamren said of Group D: "It's going to be an exciting challenge, it is a tough, uncertain group. We could have three good matches and still not progress through. The first aim is to advance to the quarter-finals."
Sweden squad for Euro 2012: Par Hansson (Helsingborgs), Andreas Isaksson (PSV Eindhoven), Johan Wiland (FC Copenhagen); Mikael Antonsson (Bologna), Andreas Granqvist (Genoa), Mikael Lustig (Celtic), Olof Mellberg (Olympiacos), Jonas Olsson (West Brom), Martin Olsson (Blackburn), Behrang Safari (Anderlecht); Emir Bajrami (FC Twente), Rasmus Elm (AZ Alkmaar), Samuel Holmen (Istanbul BB), Kim Kallstrom (Lyon), Sebastian Larsson (Sunderland), Anders Svensson (IF Elfsborg), Pontus Wernbloom (CSKA Moscow), Christian Wilhelmsson (Al Hilal); Johan Elmander (Galatasaray), Tobias Hysen (IFK Gothenburg), Zlatan Ibrahimovic (AC Milan), Markus Rosenberg (Werder Bremen) Ola Toivonen (PSV Eindhoven).