On Sunday, Capello had told Italy's state broadcaster RAI: "I thought it was right that Terry should keep the captain's armband.

"I have spoken to the [FA] chairman and I have said that in my opinion one cannot be punished until it is official and the court - a non-sport court, a civil court - had made a decision to decide if John Terry has done what he is accused of."

After a meeting on Wednesday that lasted over an hour, Capello's resignation was accepted and he left his post with immediate effect.

In a statement, David Bernstein said: "I would like to stress that during today’s meeting and throughout his time as England Manager, Fabio has conducted himself in an extremely professional manner.

"We have accepted Fabio’s resignation, agreeing this is the right decision. We would like to thank Fabio for his work with the England team and wish him every success in the future."

Following Sunday's interview in Italy, it had emerged that in making his comments, the 65-year-old may have breached his contract by publicly criticising the Football Association on the matter.

Tottenham manager Harry Redknapp is odds-on favourite with bookmakers to succeed Capello. Redknapp is 4/11 at Boylesports, with both Jose Mourinho and Roy Hodgson 10/1. England U21 boss Stuart Pearce is 20/1.