Capello himself was criticised by one of his predecessors for going public with a blast at Bernstein's decision to go over his head and take away the captaincy from Terry.

But it was business as usual today for the Italian who was at Anfield to watch Liverpool's Premier League match with Tottenham.

Capello, whose contract expires after Euro 2012, will meet Bernstein later this week, for the first time since the FA announced on Friday their decision to remove the armband from Terry until the outcome of his court case in July where he denies a charge of racially abusing QPR's Anton Ferdinand.

Capello told Italian TV he "absolutely" disagreed with the action but Graham Taylor, England manager from 1990-93, said he should have kept his feelings behind closed doors.

Meanwhile, former FA executive director David Davies suggested the Italian may have been in breach of his contract to speak out in such a way.

Taylor told BBC Radio 5: "It doesn't help the situation at all, as England go into the European Championships. I can't see what Capello's agenda is. All it does is disturb everything even more.

"It may be that he wants the FA to take a decision on this job. It depends really on how strongly he feels about it. To come out in this public fashion actually, in one respect, gives England an even bigger problem for the selection and harmony of the squad for the European Championships."

Taylor pointed out that whoever is now chosen as England captain by Capello will know full well that the Italian would prefer to have Terry in charge.

He added: "Fabio Capello, having been told by the FA in a private situation what they were going to do, has been a little bit unwise to come out as publicly as this.

"Whoever he makes as captain knows that he is not the manager's choice. That in itself doesn't help the dressing room.

"The FA apparently told Capello in private what they were going to do and why they were going to do it. He disagreed with it and it was noted. The best thing would have been for that to stay there, and not come out in such a public fashion."

Capello made his remarks in an interview with Italian broadcaster Rai in London yesterday.

Asked whether he was in agreement with the decision regarding

Terry, Capello replied: "No, absolutely not.

"I have spoken to the chairman and I have said that in my opinion one cannot be punished until it's official and the court - a non-sporting court, a civil court - has made a decision to decide if John Terry has done what he has been accused of.

"I thought it was right that Terry should keep the captain's armband."

Capello was rather less forthcoming at Anfield this evening, when he was twice given the opportunity to clarify his comments and state whether he intended to remain in his job, as so many have questioned.

"No," was Capello's first response, when asked whether he would talk about the situation, before ignoring a second attempt at dialogue as he made his way to his seat.

Capello's mere presence on Merseyside offered a clear indication he wants to continue in his £6million-a-year post.

And, in Steven Gerrard and Scott Parker, he had travelled north to watch two of the most talked-about candidates for the England captaincy.

However, there may be a few hurdles to cross yet, with Davies, who left the FA in 2006 before Capello was appointed, telling BBC's Breakfast programme that the Italian may have breached his contract with his comments and could face action from the FA.

"It is being taken very seriously by the FA because it may be that Fabio Capello has breached his contract," said Davies.

"You have to ask what his motive is. You have to suspect he wants to prevent John Terry retiring as a player before Euro 2012 but there are wider issues.

"A contract may have been breached, there is strong leadership now at the FA from David Bernstein. Last week he wasn't slow to take things forward and he may not be slow to do so now."

Meanwhile, the FA are working on a code of conduct covering all selection criteria for England players that should be up and running for next season which will cover anyone charged with a criminal offence.

The aim of the review, which has been going on for four months, is to remove any grey areas surrounding selection issues.

Chelsea boss Andre Villas-Boas tonight refused to be drawn on Capello's public backing for Terry.

Villas-Boas, who disagrees with the decision to strip Terry of the England captaincy, said: "I gave my opinion about the situation and Fabio has made public his opinion on the situation."

Sports minister Hugh Robertson has backed the Football Association's position on the captaincy, whatever the consequences.

Robertson said on Sky Sports News: "The FA had a difficult decision to make.

"The chairman spoke to his board, I think weighed it all up and took in my view exactly the right decision.

"If the consequence of that is the manager walks away, the consequence of that is John Terry walks away, I would regret both of those two things enormously, but so be it."