The Italian, whose contract was due to expire after Euro 2012, walked out on the job after four years during an hour-long meeting with FA chairman David Bernstein and general secretary Alex Horne at Wembley Stadium.
Bernstein publicly undermined Capello last week by not consulting him before taking the captain’s armband from Terry, who is facing a racism trial. Capello criticized the move on Italian television, insisting it was “absolutely” the wrong decision.
“We have accepted Fabio’s resignation, agreeing this is the right decision,” Bernstein said. “We would like to thank Fabio for his work with the England team and wish him every success in the future.”
The former Real Madrid and Juventus coach replaced Steve McClaren after England failed to qualify for Euro 2008.
Capello clung onto his job in 2010 despite England’s disappointing World Cup, where it was eliminated with a 4-1 loss to Germany in the second round.
Capello quit hours after Tottenham manager Harry Redknapp, the favorite to take over, was cleared of tax evasion by a jury.
England had 28 wins, six losses and eight draws under Capello, whose .667 percentage of games won is the highest of an England coach, eclipsing Alf Ramsey’s .611.
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