Sterling has not played well for the Three Lions in their opening two Euro 2016 Group B games in France.
Hoddle, though, has defended the former Liverpool youngster, and believes that he could have a big role to play for England later in the tournament.
The former Tottenham and Chelsea midfielder has also dismissed criticisms levelled at Sterling because of his transfer fee.
As reported by BBC Sport, City had to pay Liverpool a transfer fee of £49 million in order to sign the 21-year-old in the summer of 2015.
The youngster, who can play as a winger or as an attacking midfielder, did not have a great 2015-16 campaign for the Citizens.
Sterling scored six goals and created 35 chances in 31 Premier League matches for City last season.
“Raheem Sterling looks short of confidence as well and at present I can’t see him starting,” Hoddle wrote about Sterling in The Daily Mail. “There was frustration from the fans.
“We have to remember he is still only 21. It’s not his fault that someone paid £49million for him, which builds the expectation that he is already a world-class player.
“For me, he is an impact player at present. His best moment may come from the bench. And like Kane, he may yet have a big role to play.”
Sterling, has created two chances in two matches for England at the ongoing European Championship in France. The City attacker has a pass accuracy of 78%, and has won one header and five dribbles.