The former Liverpool and Fulham midfielder criticised his old boss for making the reason's for Sterling's omission public.
Sterling didn't start England's Euro 2016 qualifier against Estonia, but came off the bench in the 1-0 win in Tallinn.
The reason for the 19-year-old's omission from last night's starting line-up has sparked reaction from many figures in football with many different opinions.
But Murphy, who was part of the Fulham side managed by Hodgson, has criticised his old boss for making the reasons for Sterling's omission public.
He told TalkSport: “I think he [Hodgson] could have just maybe taken it on the chin and said, ‘I thought I’d give him a little breather', rather than put it on the lad.
“He wouldn’t have intentionally put it on him to create this, but I think Roy could have dealt with it differently.
“If he is genuinely tired and he was honest for the team, then fair play to him.
"Let's not make it a great deal. The lad has expressed it, Roy has made the decision not to play him and we have won."
It has prompted some reaction on social media, and not everybody is happy with Sterling asking for a rest, with others taking a similar view to Murphy.
Sterling has become a more prominent figure for both Liverpool and England in recent months, and there was bound to be a time when he needed to rest. Lightening his work load was the right thing to do from the England boss.
But for making the reasons public has left Sterling hanging out to dry to some extent and making him a target for angry supporters, when it could have been easily explained away as a tactical reason, or that his explosive pace could have been used best from the bench depending on how the game panned out.
It wasn't hard to try and protect Sterling from such criticism whilst saying he was ommited from the starting XI, enough if people crave honesty from the manager of the national side.