The former Whites boss was named as successor to Fabio Capello last week and swiftly added Fulham coach Ray Lewington to his backroom staff.
The Fulham connections have seen some suggest Murphy may be in line for a shock call-up for Euro 2012, eight and a half years after collecting his last England cap against Denmark.
The 35-year-old has laughed off such talk but believes Hodgson is a great appointment.
"I have not thought about that for a long time," the evergreen midfielder said about playing for England.
"My only thought when I heard he got the job was pleasure for him.
"I know what a gentleman he is and what a knowledgeable man he is and the players will certainly go into the Euros knowing what he wants from them. They will be well organised.
"Ray is a terrific coach as well and together they - them two and Mike Kelly - turned Fulham into nearly a Europa League-winning team.
"He will do his country proud. I think he is a terrific coach, an absolute gentleman and I am really pleased for him."
If England scouts were at Craven Cottage on Sunday, they would have been impressed by another influential performance by the Fulham captain.
Murphy led his side to a 2-1 victory over Sunderland to put the Whites on 52 points heading into the season finale against former club Tottenham next weekend.
"It is always nice to finish [your home campaign] with a win," said Murphy, who has yet to extend his contract past the summer.
"I think for the majority of the season, to be honest, we have played well here.
"The fans have witnessed some good football and I think in spells against Sunderland we played some terrific stuff.
"Even though Sunderland had some good spells as well, I think overall on chances we probably just edged it and deserved the win.
"When you finish the season, it is nice for the fans to go away and have a good memory for the return next season.
"We are playing for positions in the league, which is for both pride and financial reasons.
"Let's be honest, every time you finish a couple of places above where you anticipate is good for the club, who get more money from the Premier League, and in terms of your own personal pride to try and beat what we have already done.
"Our best is seventh and I don't think we can beat that and we got eighth last year.
"To try and get in the top eight would be a terrific achievement. With one game left, why not?"
The result leaves Fulham eighth in the standings, while counterparts Sunderland sit 11th.