The pair have traded insults in the press this past week.
"Conte is doing some very good things and proving all his worth," Capello told Sky Sport Italia.
"Everyone controls the group in the way they see best. I never said I was against the decisions he made. I was just asked a question about annulling the day off and replied I was against punitive methods. I don't like people being punished for doing something wrong. I've never done that.
"Having said that, every Coach has the right to do what he things is best and knows his own players well. It is very difficult to understand the decisions of other Coaches if you don't know what's going on behind closed doors.
"I only said that I never punished a team. I didn't say I was against Conte's decision, nor do I have anything against him."