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Rooney, 28, played on the left during England's 2-1 defeat to Italy on Saturday, and was roundly criticised for his lack of influence.
The Manchester United striker set up Daniel Sturridge's goal for the Three Lions but was guilty of missing an excellent opportunity to equalise in the second half, while his overall performance did little to dampen calls from some fans and pundits for him to be dropped from Hodgson's starting line-up.
However, Scholes insists that the problem was not Rooney, but the position he was forced to occupy, with the ex-United midfielder urging Hodgson to start him up front in England's next Group D game against Uruguay.
"The disappointing thing was not the way Wayne Rooney played but where he was played," Scholes wrote in his blog for Paddy Power
"I've previously said the best position for Wayne is centre forward. If you think about the contenders at the World Cup and goalscorers -- Holland play (Robin van Persie) in his best position, Brazil play Neymar where he wants to play, Argentina with (Lionel) Messi, Portugal with (Cristiano) Ronaldo.
"I don't blame Wayne one little bit but he was played in three different positions. He's without a doubt England's best goalscorer but he was played on the left, played on the right, then in the centre.
"Where's the confidence in Wayne to say: 'You're our main player. You're our centre forward'? If he plays there, he scores goals.''
England better off without Rooney?
The ESPN FC Panel debate whether or not England should drop Rooney and if Costa Rica will make it out of the group.