Terry missed Chelsea’s 2-0 victory over Newcastle on Saturday with a neck injury, but is in the squad, while Manchester United’s Ashley Young has been dropped.
With Wayne Rooney out due to injury Hodgson has called up Chelsea striker Daniel Sturridge to bolster the England attack.
Birmingham goalkeeper Jack Butland and Norwich’s John Ruddy will be back-up to Manchester City’s Joe Hart, meaning there is no place for Queens Park Rangers’ Robert Green who has been poor so far this season for QPR.
The road to Brazil 2014 begins at the Zimbru Stadium in Moldova on Friday 7 September before Hodgson’s side are back in action at Wembley five days later against Ukraine.
Jack Butland (Birmingham City), Joe Hart (Manchester City), John Ruddy (Norwich City).
Leighton Baines (Everton), Ryan Bertrand (Chelsea), Gary Cahill (Chelsea), Ashley Cole (Chelsea), Phil Jagielka (Everton), Glen Johnson (Liverpool), Joleon Lescott (Manchester City), John Terry (Chelsea), Kyle Walker (Tottenham Hotspur).
Michael Carrick (Manchester United), Tom Cleverley (Manchester United), Alex Oxlade-Chamberlain (Arsenal), Steven Gerrard (Liverpool), Adam Johnson (Sunderland), Frank Lampard (Chelsea), James Milner (Manchester City), Theo Walcott (Arsenal).
Andy Carroll (Liverpool), Jermain Defoe (Tottenham Hotspur), Daniel Sturridge (Chelsea), Danny Welbeck (Manchester United).