The news was confirmed on Twitter by Daily Telegraph football correspondent Henry Winter, with regular captain Steven Gerrard set to miss the encounter with a hip injury.
Lampard had been a doubt himself, as reported by Sky Sports, having been suffering with a mild cold earlier in the week.
England will then take on Germany next Tuesday, an encounter for which Gerrard should be fit to return.
Having recently reached 100 international appearances, the game represents a fantastic opportunity for Lampard to nail down a place in the squad ahead of next year's World Cup.
While he has been a regular presence up until now, the rise of players like Ross Barkley and Ravel Morrison in midfield has seen some questions over Lampard's role in the squad—having been below his best for Chelsea this season.
However, given the experience that Lampard can offer the side, it would seem unlikely that Hodgson would choose to discard the Chelsea man at this stage.
Chile represent a major challenge for England just a few months ahead of the World Cup, with Jorge Sampaoli's side excellent at retaining and recycling the ball.
On the wide pitch at Wembley, Chile should be able to bring the likes of Alexis Sanchez and Mati Fernandez into play in attacking areas, and England will have to perform close to their best to secure victory.
While the South American side are not expected to be among the challengers for the world title next year, they will provide Hodgson with a good example of the type of football they will witness when they arrive in Brazil.