Proudfoot has taken a role as head coach of Maties Rugby at Stellenbosch University in South Africa, after the RFU confirmed he had “agreed to step down” as England scrum coach.
Hodgson shadowed the outgoing defence coach Anthony Seibold in England’s autumn Tests, and was due to take over the role for the Six Nations.
But Eddie Jones’ sacking had left the Australian’s role effectively untenable after new head coach Borthwick took Kevin Sinfield to England as his right-hand man.
Sinfield’s defence specialism left Hodgson surplus to requirements, while former South Africa forwards coach Proudfoot has now opted to return to his homeland.
“We are very grateful to Matt for all he has done for England and wish him every success in his next career move,” said RFU executive rugby performance director Conor O’Shea.
The RFU also confirmed that training coordinator Danny Kerry had left the staff. The former England hockey coach’s exit only further accelerates the revamp under Borthwick.
Richard Cockerill remains in place as forwards coach, while Martin Gleeson continues to handle England’s attack.
England chiefs have insisted new head coach Borthwick will be fully backed for a new-look backroom staff, as the RFU seeks to reignite the team in a World Cup year.
Jones was sacked in early December following England’s worst set of calendar-year results since 2008, with just five wins in 12 Tests.
The taskmaster Australian is available for hire immediately, and the Wallabies have been running the rule over whether to add him to their set-up ahead of the autumn’s World Cup in France.