However, Hodgson has now admitted the midfielder, who is on loan from Chelsea, may now need surgery.
Now, it sounds like he may not play the rest of the season as Crystal Palace manager Roy Hodgson fears that the 21-year-old might require surgery.
"The injury is more severe than we originally thought, or perhaps hoped, it would be", Hodgson told BBC Sport.
Loftus-Cheek has played 17 times for Palace this season, scoring once.
With less than two weeks of the January transfer window remaining, Hodgson insists four new faces are still a realistic prospect, with injuries to the likes of Chelsea loanee Loftus-Cheek and Jeffrey Schlupp forcing their hand somewhat.
GETTYMesut Ozil's financial demands have been criticised by Martin Keown
Loftus-Cheek is now receiving treatment from doctors at Palace and his parent club.
RLC failed to complete the next England game against Brazil due to injury but returned to playing for Crystal Palace.
"I don't want to go into that at the moment because we don't know how long it would take after surgery to get him fit again".
"I wouldn't want to send him back particularly, I would like to believe that it's still a long way to the end of the season", added Hodgson, whose team travel to Arsenal on Saturday.
Palace have lifted themselves out of the mire since Hodgson's arrival at the club last September with last Saturday's [13 January] victory over Burnley seeing them rise into 12 in the Premier League - five points clear of the drop zone.
"I don't see any particular advantage in sending him back".
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