Capello backed by FA to lead England team into Euro 2012

Manager 'more focused than ever' but right-hand man Baldini is now in spotlight

(Getty Images)

The Football Association performed a major U-turn yesterday by bringing an abrupt end to its review of Fabio Capello's position as England manager with the announcement that he would continue for the Euro 2012 qualifying campaign.

Under heavy criticism that it was dithering, and with the fear that Capello could walk away if the process went on too long, the FA's main board yesterday approved a proposal that Capello continue in the position after England's 4-1 humbling by Germany. Capello will not come under any pressure to pick young players in the Euro 2012 campaign, which begins in September, and no staff changes will be enforced upon him.

The Club England body of the FA, which has held responsibility for the England team since last month, met on Thursday under the chairmanship of Sir Dave Richards. The five-person board, which includes Sir Trevor Brooking, was unanimous in its view that Capello should stay and that decision was rubber-stamped by the main FA board yesterday.

The acting chairman of the FA, Roger Burden, had earlier told Club England that the decision should be made on football grounds, not on the basis that the FA would have to pay substantial compensation to sack Capello. The likelihood that the England manager would stay has been growing since Tuesday when Phil Gartside, the Bolton Wanderers chairman, became the first FA main board member to publicly back him.

Even more crucial was the complete lack of a recognised power-structure at the FA. Even Richards, the Premier League chairman and effectively the unofficial head of the FA, was under pressure from the league to withdraw from the process. As a result, no one at the FA wanted to undertake a search for a new manager before the first Euro 2012 qualifier against Bulgaria on 3 September.

Sources claim that it would not have cost the FA £10m in compensation to sack Capello that had been widely reported. It is claimed the sum would have been more like £6m and the clause in Capello's contract that the FA deleted on the eve of the tournament did not affect the compensation payable. Instead it related to the schedule of payments to which any club who wanted to take him away from the FA would have to agree.

Once Club England had made its decision, Alex Horne, the FA's general secretary called the members of the FA main board – including Manchester United chief executive David Gill and Gartside – yesterday to seek their approval.

As The Independent reported yesterday, Richards and other FA main board members want Horne to be regarded as the public face of the decision. As the only executive member of the FA main board they thought it would look better if this was regarded as a process overseen by an exclusively FA man rather than the likes of Richards with their affiliations to other bodies.

Capello said that he was "more determined than ever to succeed with the England team". He added: "Sir Dave Richards has called me to tell me everyone at the FA wants me to continue. It is very important we use the disappointment as motivation.

"I can assure the fans I am now fully focused on our European qualifying fixtures, starting with the friendly against Hungary on 11 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."

There have been suggestions that Capello's general manager and chief aide, Franco Baldini, will step down. While that is up for consideration – and the Capello camp feel that someone has to take responsibility for the failings in South Africa – it is by no means certain. Baldini is to return to Italy and will speak to the FA when he returns.

Richards, who rarely makes public pronouncements despite occupying a powerful position within English football, maintained there had been a period of reflection though the four days was much shorter than the four weeks or so originally suggested.

Richards said: "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 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."

Jamie Carragher has announced that he has retired from international football for the second time. He described his World Cup comeback as a "one-off" and tipped Everton midfielder Jack Rodwell as a "future England captain".