The Reds are 12th in the Premier League table following Wednesday's 3-1 loss at Blackburn - their ninth defeat in 20 top-flight games this season.
With over half the campaign gone, the 18-times league champions are currently four points above the relegation zone.
The club are not expected to make an announcement on Thursday.
Hodgson left Fulham to replace Spaniard Rafael Benitez at Anfield in July but has struggled to win over the Liverpool fans as his side have laboured in mid-table.
Aston Villa manager Gerard Houllier will be given time to turn around the fortunes of the struggling Premier League club.
Villa slipped into the bottom three for the first time since 2002 after losing 1-0 at home to Sunderland on Wednesday.
Since Houllier took over in September the club has won three of their 16 top-flight fixtures and lost six of their last eight Premier League matches.
But a senior Villa source said the club remained "totally behind" Houllier.
No timeframe has been set on how long the 63-year-old Frenchman has to turn around the fortunes of the Midlands club.
Boss Carlo Ancelotti feels his Chelsea team have little chance of winning the Premier League after losing at Wolves.
A Jose Boswinga own goal in the fifth minute left the defending champions in fifth spot and trailing leaders Manchester United by nine points.
The Italian said: "It's very difficult to win [the league] but the most important thing is to come back and play football, to fight and move on."
Ancelotti added he was "under pressure" but did not fear for his job.
Pressure is mounting on the Blues boss, who has seen his side slip from the top of the table in October to being at risk of missing out on Champions League football next season.
West Ham's board has yet to decide if Avram Grant will remain the club's manager for Saturday's FA Cup game against Barnsley.
A senior figure at the club says the Hammers' hierarchy is undecided about whether Wednesday night's 5-0 defeat at Newcastle will be Grant's last game in charge.
But it is believed the board has no plans to hold an emergency board meeting on Thursday to discuss the manager's future.
Speculation surrounding Grant's position began to mount before Christmas with the Hammers having spent all season in the drop zone.
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