The former England coach has been linked with Bortolo Mutti's job at Palermo.
"Capello? He has an understandable objective at his age - to get a contract in accordance with his fame and of course his value, which is something Palermo cannot perceive," the President told Mediagol on Thursday.
"Perhaps Capello would come, but the salaries of Coaches in Italy are much lower, at least five or six times compared to the salary he could get in China or Russia, where I believe he will go in the end.
"Panucci is a great friend of Capello's and of course it is easy to create these stories that do not exist. It is news that tickles the imagination and ignites the enthusiasm of the supporters, but I do not want to deceive them."