The Three Lions entertain Belarus at Wembley on Wednesday having already qualified for the South Africa showpiece next summer.
And the Chelsea skipper reminded his international colleagues that, under Capello, no one's place in the squad is guaranteed.
“Even the players that are playing regularly and are in the squad regularly, we feel under threat for our places," he said.
“If we're not performing at club level or at this level, the manager is strong enough to drop us or not select us. That goes for everyone in the squad.
“Everyone out there who is not in the squad should have a real desire and hunger in their stomachs to get themselves on the plane.”
Terry added that Wayne Rooney's absence with a calf injury for England's final qualifier will be a significant loss to the side.
But he insisted it provided a window of opportunity for another forward to perform well and give Capello a selection headache between now and the World Cup.
“We've seen what a big player he is for the side and he's been the heartbeat of our campaign so far, he's been in great form," he said.
"His drive and desire to win is absolutely massive, so he's going to be sorely missed.
“But it's a chance for other players to come in and cement their place on the plane to the World Cup. It gives the manager food for thought for the future and a good problem.”
