Capello insists a year without armband enough of a punishment
The Italian revealed the Blues skipper will replace Rio Ferdinand as captain for the Three Lions' upcoming Euro 2012 clash against Wales and beyond after he was stripped of the armband last year following an alleged affair with ex-team-mate Wayne Bridge's former girlfriend.
Both Manchester United star Ferdinand and Liverpool midfielder Steven Gerrard are both out of the Wales game due to injury although former Juventus and AC Milan boss Capello has turned to Terry on a permanent basis and claims the 30-year-old has served a sufficient punishment.
"I have decided that John Terry, after one year of punishment, will again be the permanent captain," Capello said, as quoted by the Press Association. "I think one year's punishment is enough.
"I decided John Terry would be the captain for this game because, after the game in Copenhagen, the way the armband was moved around was upsetting for him.
"I also knew the England doctors spoke with the doctors of Manchester United and Liverpool and I knew that Rio and Steven Gerrard were injured.
"He was my first choice when I [initially] decided on the permanent captain."
The England manager also remarked on how impressed he was with Terry's demeanour without the armband throughout the last year.
"John also, when he played without the armband, was every time a leader on the pitch, a leader in the dressing room," Capello added. "He was really good every time.
"I have been impressed with John in the 12 months he was not captain. Always he is the same. He is a player that is himself a leader.
"This is really important. He is the biggest personality in the dressing room."
The Italian explained how the Chelsea captain is even better suited to the role now than before and stated: "It is not a risk making Terry captain again.
"Sometimes the leader can make mistakes - not only him but I, you, all the people. He understood the mistake and he learnt from his mistakes and all the people learn from mistakes.
"He will be a very important captain for us because when I choose him, I know he is a leader. I also think the players will be happy. I think so. They respect John Terry as a leader, absolutely."
The 64-year-old also admitted that he attempted to meet with former captain Ferdinand during a recent Manchester United fixture although claims the one-time Leeds United man declined to speak with the Three Lions boss.
"I tried to meet Rio at the Manchester United game," Capello added. "He was ready to meet me but he preferred not to meet us. I don't know why. It is a question for him, not me.
"I was ready, I wanted to speak with him and explain my decision. I hope I will meet him in the future to speak with him personally and privately, not by phone because I think by phone is not so good.
"I hope he will be fit to play for the national team because he is one of the most important people with his experience and value as a player."
Capello went on to reveal that he has spoken with Gerrard and insists he was encouraged by the midfielder's admission that he just wants to get back playing for England again.
"I spoke with Steven and it is no problem for him and he told me he wants to be fit to play the next Euro game against Switzerland," he continued.
"The most important thing for him is to return to playing on a weekly basis after the operation."