Manchester United stopper Ferdinand was named vice-captain.
"It means the world to me to retain the armband," said the 27 year old who was told the news by Capello after England's training session on Tuesday morning.
"It was about an hour ago, just after training. The manager called the whole squad together and told us as a whole.
"For me to get it above the likes of him (Ferdinand) and the other players in the squad is a great honour."
Capello said: "John's big personality is why I chose him but Rio is also important for the team which is why I made him vice-captain."
"Rio, when he was captain, played very well - the same level as John," he added. "It was not easy for me to choose because they are very good players."