Hodgson, 33, scored 184 tries in 366 appearances for five Super League clubs, but is hanging up his boots after suffering a neck injury in July.
He has now signed a two-year deal to become Chris Chester’s assistant at the KC Lightstream Stadium.
Hodgson said: “It’s a big change from what I’m used to but I’m really looking forward to it. It’s a new start for the club and a lot of new lads are coming in, so it’s an exciting time to be joining the coaching staff.
“It’s always hard to retire but it was made easier for me by the number of injuries I’ve had this year. I damaged my neck towards the back end of the season and I felt my body was telling me to call it a day.
“To be offered an assistant coaching role was a bit of a surprise but I’m keen to get stuck in. It will be a relatively young coaching team next season but that seems to be the way a lot of clubs are going at the moment and hopefully we can bring some fresh ideas.
“I’ve been lucky enough to have had a good career and this is my chance to give something back now. The outside backs we have signed for next season look quality players and I can’t wait to work with them to be honest. Hopefully they’ll fit straight in and we can have a good start to the season.”
Hull-born Hodgson played for Halifax, Wigan, Salford and Huddersfield, before joining Rovers in 2012, scoring 32 tries in 53 appearances, including a memorable effort against Hull at the Magic Weekend.
Head Coach Chris Chester said: “Although it is never easy to make the decision to retire, I’m really pleased Dave will be staying at the club in 2015 as part of the coaching staff.
“It is really important for the club moving forwards that we hold onto players of his calibre and tap into their knowledge and experience. He has played at the highest level for a long period of time and has been a real professional both on and off the field.
“He will have a big part to play in what we want to do next year, particularly with the younger players. We will have a number of young, exciting outside backs in our squad next season and Dave will be working closely with them.”
Hodgson joins fellow assistant coach Willie Poching, who arrives from Warrington, while strength and conditioning coaches Paul Hatton and Billy Mallinson have also signed new deals, as has assistant physic Roslyn Craig.