The Italian, currently managing Russia, was approached by the French champions on Wednesday, according to Sky Sport Italia.
However it is now reported that Capello failed to reach agreement with the club. The Parisians are apparently convinced that Arsene Wenger will become their new manager next year, putting them off committing to any other coach long term, although Arsenal are looking to extend the Frenchman’s contract.
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.