Sky News first reported a week ago that Hodge, who was also named recently as the government's anti-corruption champion, was being lined up to take control of the review into Arts Council England (ACE).
The review was originally announced by the Conservative government and was to be chaired by Dame Mary Archer before being shelved shortly after Labour won the general election.
Nandy said the review would be the first step on the journey to "restoring people's connection with the arts and culture in every region of the country".
The culture secretary said: "No matter your background or the place you live, we should all be able to experience the joys that dance, theatre, music, museums, even borrowing a book from a library brings.
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