Hodgson is one of three new appointments to director of rugby Nick Kennedy's back-room staff, alongside new scrum coach Matthew Ferguson and psychologist Mike Roberts.
The 36-year-old, who remains the Aviva Premiership's all-time top point-scorer, announced his retirement from playing in 2016.
He won 38 caps for England and Hodgson holds the record for most consecutive starts at fly half for the Red Rose - 18 between 2004 and 2006.
Kennedy, who has retained the rest of his staff, said: "We're really looking forward to the challenge of playing in the Premiership and the lads are working extremely hard to get themselves ready for the start of the season."
Technical director Brendan Venter, forwards coach George Skivington, defence coach Declan Danaher and attack coach Paul Hodgson have all stayed on as Exiles gear up for their return to the top flight.