Capello: 'No chance' of England return for Terry
The Chelsea captain has helped his team to the top of the Premier League, but has been retired from England duty since September 2012.
Capello resigned as manager of England in February of the year, days after the Football Association stripped Terry of the captaincy.
Despite Terry's form, Capello said the 34-year-old had no hope of playing for England again.
"John Terry has no chance of playing with the national team again," the Italian said.
"There are some young players who played with me who are improving. [Chris] Smalling is playing. [Phil] Jones is playing. I'm happy because they are players that I brought into the national team and they are playing now.
"Also Ashley Young is playing really well."
Capello also spoke about another former England captain, Steven Gerrard, who is leaving Liverpool at the end of the season to join the Los Angeles Galaxy.
The 68-year-old said he understood Gerrard's decision.
"Steven Gerrard, I have really good memories of him. He was a fantastic player. He played really well for Liverpool. He played well for the national team," Capello said.
"He has retired from the club. I understand why. A lot of English players are going to the USA."