For Hodgson, 31, the decision ends an 11-year Test career during which he won 38 caps, making his England debut in 2001 when he scored 44 points against Romania.
He toured South Africa with England this month but failed to win a place in the match-day squad for any of the three Tests, with Owen Farrell and Toby Flood ahead of him.
For much of his international career, he lived in the long shadow cast by Jonny Wilkinson. Hodgson was the more natural outside-half of the two, quick to react to the way a game was unfolding, but he also made more mistakes and was in no way as imposing in defence as his rival.
His tackling looked to have compromised his international future in the summer of 2008 after England's ill-fated tour to New Zealand, but at the start of this year's Six Nations, with Flood injured and Farrell deployed in the centre, Hodgson started in Scotland and Italy.
He scored his side's try in each game, both from chargedown kicks, as the then interim head coach Stuart Lancaster got off to a winning start, but was then injured himself and finished the tournament on the bench.
"I have been very proud to represent England over the last 11 years," said Hodgson. "Wearing the shirt has always been the highest honour for me, not least in the last six months, and no one would want to give that up.
"But Stuart and I came to the same conclusion that the time is right to let a new group of fly-halves take England forward. Saracens have been very good to me and been key to me getting back on the international scene and I can now fully focus on them, not to mention a young family."
Mears, who toured South Africa with the 2009 Lions as well as with England this summer, has also played his last game for England having won 40 caps. The 34-year old featured in two World Cup campaigns.
"Having seen what Stuart has implemented over the Six Nations and in South Africa, I am excited about the future of this group of players and English rugby and I wish them all the best," said Mears. "I have at least one more year at Bath left and with a new coaching team I am excited about next season."
Lancaster will announce his 32-strong elite squad at the end of next week, as well as the 32 players in the Saxons' setup. The decisions of Hodgson and Mears followed a conversation with the head coach.
"Charlie and Lee have in the last six months been outstanding senior players and I cannot thank them enough for the support they have given me and this young squad as we move forward," said Lancaster. "With 80 caps between them they have a vast amount of experience and that has been invaluable.
"I had chats with both of them in South Africa and our thoughts were not too dissimilar – that if we are building a team for 2015 then, just as we did in January, we have to decide on which players will take us forward and be in the mix in three years."
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