Wolfsburg boss McClaren claims it is becoming increasingly hard for Englishmen to succeed in their native country but urged them to look at new Liverpool chief Hodgson, who managed in Sweden, Switzerland, Italy, Denmark, the United Arab Emirates and Finland, before an impressive spell at Fulham prompted a move to Anfield.
York-born McClaren has also tried his hand abroad, winning the title with FC Twente in Holland last season before joining Wolfsburg earlier this summer.
He told FourFourTwo magazine: "I don't think British managers can compete for the top jobs at the present moment because they haven't got the experience of winning titles or playing in the Champions League.
"Why not go abroad? When foreign managers come to England, they often come with experience of winning things abroad.
"Young British managers have always looked to their home country to establish themselves but it's getting more and more difficult for them to come through now because of the influx of foreign managers.
"Roy Hodgson is a perfect example of someone who's left England to travel here, there and everywhere with all sorts of clubs and came back and established himself as a top manager. It's something to try to emulate."
McClaren held arguably the biggest job in English football when he was appointed coach of the national team but was sacked after a woeful 18-month spell in charge which ended with a failure to qualify for the 2008 European Championships.
"Of course I had a bad time with England - a bad 18 months. Until that point in my career it had been pretty much plain sailing so it was a big hit; a big knock," he added.
"And although I don't think I have anything to prove to anybody, people have taken notice of what I have achieved at Twente.
"So while winning the title last year wasn't a vindication to myself, I wanted to prove to everybody else that international football is different to club football and that I could still be successful with a club side.
"I joined Wolfsburg for the experience and the challenge.
"When the England job came along I thought I could do it; when the Twente job came along I thought I could do it. The Wolfsburg job is just another challenge - another step in another league and another country."