Capello to explain Terry comments to FA this week

Fabio Capello will have talks with Football Association chairman David Bernstein later this week over his public criticism of the governing body with the two sides still not yet reconciled on the issue of John Terry's sacking as captain.

The Italian was at Anfield last night to watch Liverpool's Premier League game against Tottenham Hotspur, signalling that he is continuing in his job as normal despite his outspoken remarks on Terry's removal as England captain by the FA board last week. He has not yet been in to Wembley Stadium to see Bernstein and is scheduled to be there later this week.

Sources close to the England manager said that he was not yet contemplating walking out on his £6m-a-year job despite his anger at the way in which the FA removed Terry from his post on Friday morning. Capello outlined his view in an interview with RAI broadcast live from London on Sunday in which he said he "absolutely" did not agree with the decision to remove Terry in light of his trial for racial abuse being adjourned until after Euro 2012.

There is a mood among some members of the FA board that Capello should, at the very least, offer some kind of public climbdown for his comments. It has also not gone unnoticed that in the same interview, the 64-year-old praised Luciano Moggi, the former Juventus managing director, despite the fact that Moggi was sentenced to a prison term last year for his part in the 2006 Italian football corruption scandal.

Capello has no plans to leave Terry out of the next England squad and it is understood the player is warming to the idea of continuing his international career. The Chelsea captain is carrying a knee injury that forced him to miss Sunday's draw with Manchester United and it is anticipated that he may not be brought back until the Champions League game away against Napoli on 21 February.

A former Capello player, Ruud Gullit, said he did not believe Capello would leave England before the end of his contract after this summer's European Championships. Asked if there was a possibility of Capello walking out, Gullit who said that he had seen the Italian on Sunday said: "Not at all, not at all. He wants to do the European Championship. I didn't get the feeling that he was concerned about anything. Capello is a guy that doesn't want people to tell him what to do. He just wants to go with the strongest team that he has and that's the reason he said something about it. That is something that the FA has to debate with Capello."

Privately, the FA has dismissed the suggestion by its former employee David Davies that Capello is in breach of his contract. Davies left the organisation in 2006, almost two years before Capello was appointed and has no knowledge of the Italian's contractual details.

Graham Taylor, a predecessor of Capello as England manager, has said that the Italian acted unwisely in going public with his criticisms of the governing body. Taylor said: "The FA apparently told Capello in private what they were going to do and why they were going to do it. He disagreed with it and it was noted. The best thing would have been for that to stay there, and not come out in such a public fashion."