Former Three Lions captain criticizes squad for lacking fight and desire.
The Chelsea defender stated there would be a meeting within the England camp following their dissapointing performances, against the USA and Algeria, to identify what has gone wrong and to make sure things are turned around.
"We've got a meeting tonight [Sunday] to see where we went wrong," Terry told a press conference.
"That's probably the whole 93 minutes. Everyone needs to get off their chest exactly how they're feeling.
"If it upsets him [Fabio Capello], or it upsets any player, then so be it."
Billed as World Cup 2010 contenders ahead of the tournament, England now face an uphill task just to reach the last 16.
Terry is well aware the squad must improve if they are to reach the latter stages of the competition but is adamant there is still time.
"The most frustrating thing for the manager to see was the lack of fight and desire," Terry confessed.
"We all, as a group of players, need to relax and do what we do week-in, week-out for our clubs and do what we did in the qualifying campaign.
"We shouldn't be changing the way we play and we shouldn't be worrying about other sides, because from what I've seen so far no teams worry me at all.
"Argentina are probably the best side so far. Everyone goes on about Germany and then they lose the game [against Serbia].
"We got criticised for playing a long ball game but, football-wise, we can mix it with anyone.
"I think everyone knows we can play. Week-in, week-out with our clubs we play football on the floor. But first and foremost, we're a proud country and we've got to go out there wanting to win."
Terry will be hoping to put things right on Wednesday when the Three Lions have a must win encounter with Group C leaders Slovenia.
And Capello is expected to make changes to his starting line-up, although Terry reiterated that despite the under-par performances the players still had the utmost confidence in the Italian's leadership.
"I have seen a few reports myself. There is no unrest in the camp at all," he added.
"I'm not going to sit here and question the manager. I'm here on behalf of all of the players to say we are fully behind him.
"Everyone is positive."
Terry went on to give his full backing to Capello, and believes the foundations laid in qualification by the manager will come good against Slovenia.
"Since the manager has come in he's had his ways and his philosophies that he's brought to the side.
"That's worked in the campaign and nothing should change from that. We've got to stay unified and stay together and get the win."
Wayne Rooney was one of a number of players that allowed his frustration to spill over at the full-time whistle against Algeria, unleashing an outburst aimed at the jeering England fans.
However, Terry believes the whole squad is to blame and they can use their frustration to their advantage in their next game.
"Wayne's [Wayne Rooney] okay. He's frustrated, you could see that after the game the other night," he added.
"The dressing room was very quiet after the game and the players were disappointed with the way we performed.
"After the game the other night all the players as a group held their hands up and said it wasn't good enough.
"We're still upbeat, we've still got to go into the last game to top the group. We realise the last game was totally unacceptable.
"The good thing is we can go into this next game four days later and prove people wrong, go out there and put on a performance.
"But more importantly, get the three points and get us through the group. The main thing keeping us going is the game on Wednesday and we're looking forward to that."
Following support in some sections for the inclusion of Joe Cole in the starting line-up, Terry has given his backing to his former Chelsea team-mate, viewing the diminuative midfielder as the key to opening up opposition defences."I think so, we've seen him [Joe Cole] with Chelsea," added Terry.
"I personally think he and Wayne are the only two in the side who can really open up things and are key to breaking down defences.
"If he's called on Joe will do a great job."
Terry also moved to dismiss rumours that pressure was getting to the squad, but did concede the players have been suffering from boredom at their Rustenburg base."There is a little bit of boredom kicking in," Terry concluded.
"That's where as group of players we need to stick together. I don't want to go home on Wednesday, I'm here to win it."
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