Capello lifts lid on how he stripped Chelsea skipper Terry of England captaincy
The Italian admits public opinion was a major factor in his decision.
Capello told the Gol Televisión: "Players and fans want the captain's armband to be worn by an exemplary player. They want the captain to be an example for young children.
"What happened with Terry wasn't good. I saw him at Wembley and we spoke about [the affair] and we spoke about football. It was fine. He understood [my decision].
"I explained to him that he could not continue as captain but I also told him that he would continue to be a leader on the pitch and an important player because a coach needs a player like that."