The 2005 Lions tourist has spent 10 years with Sale Sharks but he will leave Edgeley Park at the end of the season to join big-spending Sarries.
"I am excited to be joining a club now recognised as the most ambitious and player-friendly in the Premiership," said Hodgson.
"Saracens have great people and great plans, there really is something special happening in north London, and I'm looking forward to being part of it."
The 34-times-capped pivot is the all-time record points scorer in English Premiership rugby and Saracens director of rugby Mark McCall was delighted to capture the services of such an experienced campaigner.
"As a club, we have been making massive strives over the past couple of years and the signing of Charlie Hodgson is another major step," said McCall.
"He's a world class player whose personality and ability ideally suits our environment. Charlie was wanted by many leading clubs, and we are delighted he has chosen to sign with Saracens."