The NRL newcomers have recently emerged as a keen suitor for the New South Wales fullback's services in recent days, with Wayne Bennett still out to bolster his roster ahead of their inaugural campaign next year.
Mitchell has been linked with a potential reunion with his former head coach, with the pair having shared their time together at Redfern.
Still loaded with cap space and keeping an eye on Mitchell's contract situation with Souths, the Dolphins are equipped and would be ready to pounce should the Rabbitohs gun be open to joining a third club.
While South Sydney have already hit back at Bennett's reported interest in Mitchell, Hodges has backed a move for the 25-year-old to join the Dolphins.
Having rekindled some of his best form since returning from Philadelphia to work with a conditioning specialist on a hampered hamstring, Mitchell has been a key piece in the Rabbitohs' strong second-half to the season, something that has gained praise from Hodges.
“I would love to see Latrell at the Broncos ideally, Hodges said. "But he would be great at the Dolphins. He has come back in unbelievable form.
“Whatever he did in America he needs to keep doing.
“Before he came back, Souths were in danger of missing the finals but since he has come back, the side looks a chance of challenging for the title.
“The Dolphins have a big chequebook at the moment and plenty of money to spend. He has worked under Wayne before and Wayne would be going hard for him.
“It would be good to see him in Queensland at the Dolphins.”
Mitchell is contracted until the end of next year on a reported $850,000-per-year deal and will be able to engage with interested rivals from this November.
The Taree native will look to implement a strong finish to his 2022 campaign as the Rabbitohs look to strengthen their standing ahead of the post-season.
South Sydney will face fellow finals contenders North Queensland at Homebush on Saturday night, with the two clubs separated by six premiership points with two games remaining in the regular season.
The Rabbitohs will conclude their home and away campaign against arch-rivals the Roosters next weekend, while their top eight spot remains under threat should they stumble in the finals fortnight of the season.