The 2005 British & Irish Lions tourist has turned down the offer of a contract extension and is looking to fresh pastures for the 2011/12 season.
The 30-year-old outside half has scored a Premiership record 1,753 points for the Sharks and won two Amlin Challenge Cups and one league title with them. But they are currently languishing in 10th place in the Premiership, and recently sacked new coach Mike Brewer
"Irrespective of what has happened this season at the club, I wanted a new challenge elsewhere. I'm not getting any younger and wouldn't want to hang up my boots wondering whether I should have moved," admitted Hodgson.
"Sale have always been good to me and I have made many friends at the club, both on and off the field. The fans are very special and they can rest assured that I will be giving everything and more while I am still a Sharks player and want to leave the club on a high note."
Sale are also battling to keep hold of 2009 Lions tourist Andrew Sheridan and if he follows fellow England international Hodgson out of the door then it will be a huge blow to the club.
"Charlie will without doubt be considered one of the greatest players to ever play for Sale Sharks. We made it clear to him we wanted him to stay, but understand his reasons for wishing to move on," said Sale Sharks chief executive Mick Hogan.
"We know what a difficult decision this has been for Charlie and the club are thankful for the early indication he has given us on his future."