Shearer said this week: "Letting Terry return would cause all manner of problems."
Former captain Terry retired from England duty in September 2012, accusing the Football Association of making his position "untenable" after it pursued a claim of racism against him.
Terry's form has been so good this year that Gary Lineker, among others, called for the Chelsea skipper to come back to the international fold.
Hodgson has repeatedly insisted Terry will not be considered for international selection and the England manager reaffirmed that stance on Wednesday.
Roy Hodgson: "The door isn't open (for Terry) because he has retired from international football.
"John has retired and as far as I am concerned that is the situation."
Terry has enjoyed a renaissance since Jose Mourinho came back to Stamford Bridge for a second spell as manager.
The 33-year-old's partnership with Gary Cahill has been particularly pleasing for the Chelsea boss and the club's fans.
Lineker led the calls for Terry's reintegration on Twitter last week when he posted: "Must be hugely tempting for Roy Hodgson to pick up the phone to John Terry. Solid regular partnership with (Gary) Cahill. Best option by far."
But just to be clear on the matter, Hodgson offered a firm rebuttal when the idea of Terry returning was raised for a second time in a media briefing at Wembley.
Roy Hodgson: "As far as I am concerned, retirement is retirement.
"You respect that when players retire, we move on.
"We moved on after our first qualification game when John Terry limped off and since that time we have chosen the players who are available, who have represented us well in my opinion, so we will continue with that.
"That is not to say he is not a good player and he is not playing well at the moment. Everyone knows he is, but he is in retirement and that is the end of the matter as far as I am concerned."
One Chelsea player who seems to have gone backwards under Mourinho is left-back Ashley Cole.
Cole had been a near ever-present in the Chelsea defence for seven years, but this term he has lost his place to Cesar Azpilicueta, who normally operates at right-back.
Cole's place in the England squad may now come under threat as a result of the development of Leighton Baines and Luke Shaw.
Hodgson, who made Cole captain for his 100th appearance against the Republic of Ireland last season, remains a big fan of the 33-year-old, but there was also an acknowledgement from the England manager that he has a growing number of options in that position.
Roy Hodgson: "It's a bit of a problem when you are a full-back - you either play or you are an understudy.
"For years, people have been understudy to Ashley. Now it's Ashley's turn to sit back, but we know what Ashley can do. We know how fit he keeps himself, how experienced he is.
"I certainly wouldn't write Ashley Cole out of any plans because he wasn't playing in his club team. But he will have to accept like everyone else that competition for his place in the club team and international team gets stronger all the time, and I will have a decision to make."
There is a growing feel that Shaw, 18, could be included in Hodgson's squad for next month's friendly against Denmark - the final game before the England manager selects his provisional World Cup squad.
Several others are also making a late play for the plane to Brazil, principally Sunderland winger Adam Johnson and Liverpool's Raheem Sterling.
Roy Hodgson: "They have both done very well.
"We have had them with us in the past. In the wider areas in particular there is enormous competition for places.
"At the moment a lot of places are up for grabs and the good thing in a friendly match is that you are allowed six substitutions so it gives me a chance to air more players than you get in a qualifying game."
Another player who could feature against the Danes on March 5 is Jermain Defoe, even though he has made a move from Tottenham to Major League Soccer side Toronto FC.
Roy Hodgson: "He will be playing in a league a long way from the top league over here, but that won't change anything as far as I am concerned."
1 Chelsea 57
2 Arsenal 56
3 Man City 54
4 Liverpool 53
5 Tottenham 50
6 Everton 45
7 Man Utd 42
8 Southampton 39
9 Newcastle 37
10 Swansea 28
11 West Ham 28
12 A Villa 28
13 Hull City 27
14 Stoke City 27
15 C Palace 26
16 Norwich 25
17 West Brom 24
18 Sunderland 24
19 Cardiff 22
20 Fulham 20