• 'I'd like to thank John for his commitment to the England team' • Terry announced international retirement on Sunday evening

The England manager, Roy Hodgson, said he was "disappointed to lose a player of John Terry's international experience and exceptional ability".

Terry announced his international retirement on the eve of his Football Association disciplinary hearing on a racism charge, with the Chelsea captain claiming the case made his position with England "untenable".

Hodgson said he was sorry to lose the services of Terry, one of his best players at Euro 2012. "I'd like to thank John Terry for his commitment to the England team since I became manager. I am of course disappointed to lose a player of John's international experience and exceptional ability.

"I have enjoyed a good relationship with John during my time as England manager and I reluctantly accept his decision. I can also confirm that he had the courtesy to call me prior to the announcement of his retirement from the England team. I'd like to wish John well for the future with Chelsea."

The FA also thanked Terry for his England service. A statement said: "Following his announcement that he is retiring from the England team, the FA would like to thank John Terry for all of his efforts with the national team over the past decade. During his 78 appearances John has always given his full commitment to the team."

Terry effectively accused the FA of forcing his hand after they charged him over last October's altercation with the QPR defender Anton Ferdinand, despite being cleared in court of a racially aggravated public order offence over the same incident.

The FA general secretary, Alex Horne, denied this was the case. He said: "I don't see how we've made it untenable – they're two very separate processes. It's something that happened in a match between QPR and Chelsea – it shouldn't be taking a year to resolve but we feel we're reaching a conclusion on that.

"That's a very different process, from my perspective, from our England procedures. They sit in different compartments and I could separate the two in my mind. But, unfortunately it doesn't look like he could."

Horne was speaking as Terry's hearing in front of an independent FA panel began at Wembley. The case could last all week – a similar hearing involving Liverpool's Luis Suárez took four days.

The 31-year-old Terry could face a lengthy ban if found guilty by the FA of using racist language during Chelsea's Premier League defeat at QPR on 23 October last year, a charge he categorically denies.

Terry admitted using the words but insisted he had only been repeating words he thought Ferdinand had accused him of saying.

Terry said in his statement on Sunday: "I am making this statement today in advance of the hearing of the FA disciplinary charge because I feel the FA, in pursuing charges against me where I have already been cleared in a court of law, have made my position with the national team untenable."