He said: "I think Steven Gerrard is a fantastic player and against Kazakhstan you will see he plays in a very important position on the field.
"I think I know the best position for Gerrard. You will see, although for me he can play in two or three positions. It depends on the game which one he plays in."
Gerrard was Capello's first captain against Switzerland back in February but did not do enough to convince the boss he should be the permanent skipper.
That said, Capello regards the Kop ace as an essential part of his plans - although he appears to have forgotten how many times Gerrard has turned out for him.
He was adamant it was three when actually it is five.
Capello said: "With me he has only played three times but always as a midfielder. He plays where I think it's better for him, always. Throughout my career, my style is to put the players in the best position for them to play better and at 100 per cent in the team.
"Fantastic players have to play together, in my opinion. I don't know why Gerrard and Lampard haven't worked before. The past is not my problem. I think about the future. Gerrard has to play like when he plays with Liverpool ... the same.
"He's one of the 11 players on the pitch. We win and we lose together, always. He's an important player, for sure, but he's only one of the 11."