Roy Hodgson has followed up his announcement that he will not be bringing John Terry out of international retirement for the World Cup by making it clear that Ashley Cole's position has become vulnerable now he has lost his place at Chelsea.

Hodgson gave his strongest indication yet that Leighton Baines, a regular starter for Everton, has the strongest credentials to be England's first-choice left-back and the manager intends to name Southampton's Luke Shaw in his squad for the Wembley friendly against Denmark on 5 March.

Cole has not started any of Chelsea's past four matches, having lost his place to César Azpilicueta, and Hodgson is increasingly concerned about the player's lack of games.

"For years people have been understudy to Ashley. Now it's Ashley's turn to sit back. We know what Ashley can do. We know how fit he keeps himself, how experienced he is. I certainly wouldn't write Ashley Cole out of any plans because he isn't playing in his club team. But he will have to accept, like everyone else, that the competition for his place in the club team and international team gets stronger all the time, and I will have a decision to make.

"It's a bit of a problem when you are a full-back. If you are a midfield player, there might be three or four positions you can play. Full-backs are like goalkeepers – either you play or you have to be understudy."

Hodgson has admitted in private that he still regards Terry highly but his admiration will not extend to inviting him to add to his 78 caps, despite José Mourinho's assertion that Chelsea's captain has been the outstanding central defender in the league this season.

"John has retired," Hodgson said. "As far as I'm concerned that is the situation. We've got along without him for the whole of the qualification, and quite a few friendly matches, and we'll have to get along without him in the future. As far as I'm concerned retirement is retirement.

"You respect that when players retire. We move on. We moved on after the first qualification game when John Terry limped off [against Moldova]. Since that time we have got on with it and have chosen the players who are available, who have represented us well in my opinion and so we'll continue with that."

That announcement almost certainly closes the door on a recall for Terry unless he declares he is available again. He has come close to doing that at least once before, having retired as a protest when it became clear the Football Association would launch a disciplinary case against him for allegedly racially abusing Anton Ferdinand during a Chelsea game at QPR. Terry had been acquitted in court but an independent FA commission ruled he was guilty and banned him for four matches.

Hodgson confirmed he will name a provisional 23-man World Cup squad on 13 May, with seven players on a standby list when they leave six days later for a four-day training camp in Portugal. Hodgson will take his squad to the country in the week between the FA Cup final and the Champions League final, from 19 to 23 May. It is also understood that Hodgson will next week visit Miami, where England play two warm-up games in June.

Hodgson will inspect the training facilities that England will use in the United States during their stay there and he will also visit the Brazilian city of Manaus, where England play their opening World Cup game against Italy.

Hodgson's squad for the Denmark game will be announced on 27 February, with Adam Johnson and Raheem Sterling expected to win a recall. "They have both done very well," the manager said. "Both of their teams have profited enormously from their form. We have had them with us in the past. At the moment we are talking about Raheem and Adam. I am sure we will be talking about others too but its nice to know that competition exists."

As it stands, Hodgson's preference is for Baines and Cole to go to Brazil as his two left-backs, with Glen Johnson and Kyle Walker on the other side, but Shaw has been pencilled in for his debut against Denmark.

"We have to be quite satisfied with the number of full-backs who are available," Hodgson said. "Now we have to wait and see who is going to be available and fit when push comes to shove."