England reached the quarter-finals at the Euros under Hodgson but Capello thinks his Three Lions would have gone even further.
He said: "If I were with your guys (England) during the European Championship, it would have been even better.
"We had qualified for the finals and it was only the John Terry story that meant I couldn't go to the finals.
"Every national coach works for two years towards a goal but I was not given the opportunity to fight for the Euros with England.
"When you are told this is the goal and if you are always interfered with, then you don't feel well.
"With my contract, it was put down on paper that the decision as to who would be captain should be made only by the coach. It was down on paper, in the contract, in black and white."
However, the FA disputes this last point and a spokesman said: "Fabio Capello's representatives have acknowledged, in writing, that the FA had the fullest authority in dealing with the matter (of the captaincy)."