The midfielder, who was in a fine run of form before picking up a hip injury against Watford last year, has returned to training this week and is on the bench against Manchester United tonight.
"The doctors and medical people are wary, once again, having been out of football for a long time, how many minutes he [Schlupp] could safely play," said Hodgson.
"But it’s very good to have him available at least and he himself feels good and would be very happy to play the number of minutes I feel I could give him."
Palace will be without Christian Benteke for the rest of the season after the striker was sent off for kicking out at Ezri Konsa following the final whistle of the defeat to his former club Aston Villa.
Martin Kelly is also on the bench following his own long injury absence, having been back in the matchday squad against Villa, as Hodgson does not want to rush the defender back.
"We could do that if we wanted to select him [to start v Manchester United]," Hodgson said. "He has been back in training now for almost two weeks, so that means if we wanted to use him he would be available.
"But of course, unless I was really forced into it, I’d rather give him a bit more time because he’s been missing for so long, that the day that he does step back in it is going to be a big day, so I’d prefer to keep him up my sleeve for as long as I can."
Crystal Palace: Guaita, Ward, Dann, Sakho, van Aanholt, Townsend, McArthur, Milivojevic, McCarthy, Zaha, Ayew
Subs: Meyer, Kouyate, Hennessey, Schlupp, Kelly, Woods, Mitchell, Pierrick, Riedewald
Man Utd: de Gea, Wan Bissaka, Lindelof, Maguire, Fosu-Mensah, McTominay, Pogba, Greenwood, Bruno Fernandes, Rashford, Martial
Subs: Bailly, Mata, Lingard, Fred, Dalot, James, Romero, Ighalo, Matic