Fabio Capello's England Future Still Unresolved After Meeting With FA Chairman; Showdown Talks Slated For Wednesday - Report

England manager Fabio Capello has arranged a second round of contract talks with Club England chairman Sir Dave Richards for Wednesday after a "very positive" meeting this afternoon.

Capello, 63, was in contact with Richards over the telephone to discuss him continuing in his current role after the upcoming World Cup amid interest from Serie A giants Inter Milan. The negotiations centred on removing a 'get-out' clause inserted in to the four-year deal he signed in 2008 and will not include a wage increase.

Previously, Capello had verbally agreed a new contract with ex-Football Association chairman Lord Triesman before his resignation halted talks.

Inter supremo Massimo Moratti has stated Capello is an attainable target, but the Italian is understood to want to have the new deal sorted before naming his final 23-man World Cup squad in mid-week. The Italian has insisted he is happy in the Three Lions hot-seat and wants to continue until Euro 2012.