Speculation was rife that the 65-year-old's friendship with general manager Christian Panucci might lead to the experienced coach taking charge of the Sicilians
Italian sources had suggested that the former England manager was considering an offer from the Sicilian club's general manager, Christian Panucci, to take charge of the Serie A outfit.
Zamparini insisted that there is no truth in the story, but admitted that if the Arab-led takeover of the club succeeds he could try to convince Capello to lead the team.
"Capello to Palermo? That is something that newspapers invented, given the fact that Panucci is friends with Capello," Zamparini told ilsussidiario.
"But if the Arabs arrived it could be an option, I think.
"Right now it is impossible because his salary is six times what we could offer him."
Capello has been out of the game since stepping down as England boss in February because of a dispute with the Football Association.
Palermo sit 11th in the Serie A table, with 40 points from 32 games.