The 66-year-old claims selecting the team captain was written into his contract and admits he was angered after officials intervened to strip the Chelsea man of the armband.
The Italian manager resigned in February after Terry had the armband taken away by FA chairman David Bernstein after the player was charged by the CPS for allegedly racially abusing QPR defender Anton Ferdinand. Capello, who has recently taken over the reins of the Russian national side, has stated that this contravened a clause in his 6 million pound-a-year contract.
"In England, with my contract, it was on paper who should be the captain. It was a decision for the coach. It was down on paper," Capello explained to reporters. "If I had taken the team to the Euros it would have been even better, but the John Terry story meant I couldn’t go to the finals
"I achieved everything I wanted to achieve with England. I worked in England for four years and after everything that happened I was pissed off, so I wanted to stop.
"I was not given the opportunity to fight for the Euros with England because of everything that happened with John Terry. When you are told the goal and you are always interfered with, then you don’t feel well and are ill at ease.
"I wanted to become the main guy of the national team to take the team to Brazil in 2014. I wanted that again."
The situation led to the appointment of Roy Hodgson as his successor just a month before the start of Euro 2012, but the Italian stated that a gag order stopped him from telling the full truth of the story behind the scenes.
"The contract with the English FA means I am forbidden to talk about the national team," he added. "I would like to, but I am bound by the clause in that contract. That’s why I cannot tell you anything else."
After being appointed as manager of the Russian national team, Capello, who struggled throughout his four-year spell in England to learn the language, has admitted that he's unlikely to learn Russian during his two-year contract.
"Russian is a difficult language to learn," the 66-year-old noted. "I will convey my message to the players with the assistance of a translator."
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