"Fabio just wishes to clarify he did not mean he was planning to quit the England job after the World Cup," said an FA spokesperson.
"I have spoken to him and his focus is solely on one tournament at a time.
"At the moment, his full concentration is on qualifying for the 2010 World Cup and he is not thinking past that objective at the moment."
Menawhile, BBC Sport has also learnt that the Italian's salary is partly performance related and that reports suggesting he earns a guaranteed £6m per year from the FA are wide of the mark.
It is also understood that reports of an "opt-out" after the 2010 World Cup heavily favour the FA.
Capello also told La Repubblica that he would prefer Frank Lampard to play his club football in the Premier League.
The Chelsea midfielder has been heavily linked with move to Serie A giants Inter Milan during the summer transfer window.
"As England coach I would prefer it if Lampard remained in England - he would have less travelling to do that way," added Capello.
The former AC Milan, Real Madrid, Roma and Juventus coach also said that 33-year-old David Beckham was still part of his plans.
"Until he is unable to play at an international standard, he will play," he said of the LA Galaxy midfielder.
