Hill, often singled out as one of the key figures in the England set-up, has not played since he limped off with a hamstring pull in England's opening tie against Georgia over three weeks ago.
Despite the seriousness of the injury being played down by the England camp, Hill has been unable to shake the injury off.
Speaking about the injury situation, Woodward said: "We won't know finally until tomorrow, but certainly with Balshaw he is going to be fine and that Martin Corry is ok and those were the two that we were worried about from the match.
"So, the biggest concern is Richard Hill, this niggling hamstring doesn't seem to go away."
The England squad have moved into the centre of Brisbane ahead of the game, but Woodward does not feel it will prove too much of a distraction.
"It depends how you handle it. When England are away from home, playing Test matches, we always try and stay in the centre of town, you can isolate yourself too much from an international game and our experience is that we should stay in a good hotel right in the middle, so the players can pick up the flavour of what is going on," he told zurichpremiership.com.
"My message to the players is that we are not here to go into a sort of closet, we need to behave how we normally do, walk down the streets, go out for coffee and just do what they normally do back in England.
"This is a very serious tournament that we are in but you can also be too serious about it and become a recluse and we don't want that," he added.
He also praised the Australian organisers of the tournament and said despite the spectator getting on to the Brisbane pitch last weekend, he was not unduly worried.
"The organisation in every sense has been first-class, you cannot fault it," said Woodward.
"Meanwhile, if you get some idiot in the crowd determined to run on the pitch in that split second it is very difficult to actually stop it but I just praise the Australians again now that we are getting into the serious end of the tournament, they have just done a brilliant job and it just proves to me that World Cups should be in one country."