The Mail on Sunday says Crouch, who has scored 22 England goals in 42 games, was left feeling humiliated after Capello for the draw with Switzerland selected Darren Bent as his lone striker, with Fulham's Bobby Zamora on the bench.
Crouch was at Wembley and wore his England blazer but it is the final straw for the 6ft 7in striker.
A close friend of Crouch said: "That is the last time he [Crouch] plays for Fabio Capello. It is almost a deliberate humiliation."
Crouch's friend, who revealed the player's disillusion with Capello, added: "Peter has always been loyal to England, regardless of the importance of the game.
"He's got a fiancée and baby daughter. He could have been on holiday with them but wanted to be part of things, unlike some other players. And once again he has been treated badly."