The former Spurs and Portsmouth front-man is reportedly on the verge of heading back to the Premier League after a year with MLS side Toronto, who failed to reach the play-offs despite big investment.
Should a deal go through in time Defoe could make his Black Cats debut this weekend against his old side Tottenham.
Hoddle says that QPR boss Harry Redknapp was keen on the 32-year-old, but that his salary demands were too high, and that Sunderland will have an excellent player on their hands if he signs on the dotted line:
“We would have liked to have gone if for him,” he told Zapsportz.com.
“Harry likes him, of course, he has signed him before and he knows exactly what Jermain can do.
“But he is on a big contract and that put us out of the running. We could not do it.
“I think it is a very good signing for Sunderland and I think Jermain will do well there.”
A source close to Sunderland told Zapsportz that Defoe’s move will not cost much in terms of a fee and that his contract in the North East will be highly incentivised, with avoiding relegation a big factor:
“Defoe’s move may not involve a lot of money being put down for a fee but it will be heavily incentivised. The club has to pay Defoe’s wages and then the player will get even more in bonuses if the club is secure and does not drop into the Championship.”