The Hornets announced that Edwards, 39, would take charge at the end of the season, bringing Hodgson’s short-term tenure in charge at Vicarage Road to an end.
The 74-year-old wished his successor, who joins from League Two champions Forest Green Rovers, all the best, and said: “I think the direction is really quite a sensible one. “They’ve obviously appointed a talented young coach. I know exactly what he’s done at Forest Green and I know the success he has had there and I think maybe that would be a good move for the club.
“I haven’t had any input into the direction the club should take, but if you ask me whether it seems to be a good direction, I would definitely say yes it does.
“All I can do is wish him well and I hope if he has seen the game Wednesday he would have seen enough in that group – and knowing perhaps a little about the players who aren’t anywhere near the team – to believe he can get this team back into the Premiership.”
Hodgson believes everything is in place at Watford for former Wolves defender and interim head coach Edwards to succeed.
“He’s coming into a club that has had good spells in the Premier League,” former England boss Hodgson said. “Unfortunately in the last four seasons they’ve been up, down, up and now down, so you could argue that at the moment we’re in that yo-yo situation. “I think the structure at the club and everything he’ll find here will be everything a coach could wish to find.
“The facilities, the way the club is set up to provide help to the coach, the sports science, the nutrition, all of those modern things which are so important. Our club is as good as any out there in that respect.”