Reports have suggested that Capello would be sacked following England’s poor performance at the World Cup.
Capello said: “I am more determined than ever to succeed with the England team.
“Sir Dave Richards has called me to tell me everyone at the FA wants me to continue. I explained it is very important we use the disappointment as a motivation in the future.
“I can assure the fans I am now fully focused on our European qualifying fixtures, starting with the friendly against Hungary in August.
“We will look to introduce new players to give the team new energy and I will use all my experience to take England forward.
“I am extremely proud to be the England manager, it means so much to me and I am determined to succeed.”
Club England chairman Richards added: “We are all still extremely disappointed at our performance in South Africa, and we believed it was important that we took some time to reflect on everything in a calm and considered manner back in England.
“After fully discussing our performance we remain convinced that Fabio is the best man for the job.
“He went into the World Cup with a reputation as one of world football’s finest managers and we are confident Fabio will benefit from his first international tournament experience and this will undoubtedly make us all stronger for the Euro 2012 campaign.”
FA Board acting chairman Roger Burden commented: “The FA Board supports this decision. It is the right decision and will allow us now to rebuild for the future with Fabio leading us forward.”
