Hodgson has found himself at the centre of speculation that suitors could be beating a path to his door after he guided the Londoners to the Europa League final, where they lost narrowly to a Diego Forlan-inspired Atletico Madrid.
Republic of Ireland international Duff, who had previously worked under the Englishman as a young player at Blackburn, is desperate for Hodgson to remain at Craven Cottage.
He said: "He's done a great job there so far and I still think there's an awful lot more to do.
"I would say the thinks he's got unfinished business there and I think we can go from strength to strength, so hopefully he will stay. I think he will.
"I started off in the first team 12, 13 years ago with him, so I have always thought the world of him.
"It's great working with him and anyone who has worked with him, he is a top coach, they will tell you.
"He's great, and you can see what he has done with the team this season."
Hodgson's achievements have rightly won him plaudits across the board, and Duff believes that is nothing more than he deserves.
He said: "A million per cent. He's a top coach, as you can see by his CV, the teams he has managed.
"He has managed Inter Milan twice, so you needn't say anymore."