The former England boss says he hasn't signed anything with Russia yet.
Earlier on Monday, Nikita Simonya, vice president of the Russian Football Union (RFU), had been quoted as saying that the 66-year-old had agreed to replace Dick Advocaat, who quit the national team after Euro 2012.
Capello hinted that talks with the RFU are at an advanced stage, but insisted that he has not yet signed any contract with the federation.
"I have not yet signed anything, but I hope the deal will go through," Capello told Sky Sport Italia.
"England? I cannot talk about it. My compensation deal does not allow me to."
The veteran coach then commented on Paris Saint-Germain's activity in the market as the French capital club is closing in on a deal for Zlatan Ibrahimovic after signing Thiago Silva at the weekend.
"The Sheiks make the market," Capello explained. "Barcelona and Real Madrid are also reflecting the crisis.
"Milan's decision to agree to sell Ibrahimovic and Silva was wise. I think this was a difficult decision for Silvio Berlusconi to make."
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