London - Fabio Capello has quit as England manager following the Football Association's decision to strip John Terry of the captaincy, the FA announced on Wednesday.
"Fabio's resignation was accepted and he will leave the post of England manager with immediate effect," the FA said in a statement.
The Italian quit following a meeting at Wembley with FA chairman David Bernstein.
The FA said the discussions focused on its decision to remove the captaincy from Chelsea skipper Terry, who is facing trial later this year on charges of racially abusing QPR player Anton Ferdinand.
Capello had publicly disagreed with the decision in an Italian television interview.
"I would like to stress that during today's meeting and throughout his time as England manager, Fabio has conducted himself in an extremely professional manner," Bernstein said.
"We have accepted Fabio's resignation, agreeing this is the right decision. We would like to thank Fabio for his work with the England team and wish him every success in the future."
The decision comes within hours of Tottenham Hotspur manager Harry Redknapp being cleared by a jury over charges of tax evasion.
Redknapp is the bookmakers' favourite to become the next England manager.
Capello was heavily criticised for England's disappointing performance at the 2010 World Cup in South Africa where they were thrashed by Germany in the second round.
His contract was due to expire following the European Championships in Poland and Ukraine, which kicks off in June.