Picking up an injury at the tail end of the 2018/19 season, Schlupp played over the summer for Palace - including on their pre-season tour of Switzerland - but left the field of play at half time against Bristol City on July 27th.
Training through this week, however, the 26-year-old has returned to the fold for the south Londoners.
Hodgson said that it is a "fine piece of news" to have "an extra player" with Schlupp returning.
Turning his attention to longer-term absentees James Tomkins and Mamadou Sakho, Hodgson stated that the pair of centre-backs are still unable to play competitively with the team as they continue their recovery.
Asked about the effect of having a larger squad with the return of players such as Wilfried Zaha and Cheikhou Kouyate from the Africa Cup of Nations and recent additions Gary Cahill, Victor Camarasa, James McCarthy and Jordan Ayew, Hodgson expressed his satisfaction with having a more replete group of players to pick from.
"It’s good to have a big squad," he said, "much better than it was in pre-season. All these people we were waiting on are [now] getting training minutes behind them. The game with the Under-23s on Tuesday gave me the chance to let some of those boys play 90 minutes of football."