Capello controversially reinstated Terry last night, attracting huge criticism for the manner in which he deposed Rio Ferdinand.

While saying he felt "sorry" for Ferdinand, Shilton insisted it was the right move.

"I was always a supporter of John Terry as England captain, and I don't think he should have lost the job in the first place," Shilton - who captained England 14 times among his record 125 caps - told Radio Five Live's Sportsweek.

Terry lost the captaincy last year in the wake of allegations of an affair with the ex-partner of his former Chelsea team-mate Wayne Bridge.

"Every player in the England squad for one reason or another has had the press have a go at them," Shilton added.

"Not to condone what John Terry has done on occasion, but he hasn't broken any laws.

"You want the best on the pitch and John Terry has always been known as a natural leader, someone who would run through a brick wall to stop a goal going in, then in the next minute he's up the other end scoring the winner and that's what you want in a captain.

"I feel sorry for Rio but I would put him in front of Rio as a captain.

"You've got to make tough decisions and if Capello feels he wants John Terry that's what he should do."

Wales manager Gary Speed, whose first competitive game in charge will be against England next weekend, said he does not expect anything to change about Terry's game.

"It's not my job to comment on (the decision), but John Terry would not change his game whether or not he had the armband," he said.

However, having been given a second chance, Speed expects Terry to ensure there are no further distractions that could cost him the armband again.

"Representing your country as captain was a job I was fortunate enough to do," said the former Wales skipper. "You're very honoured to walk on to the pitch as captain and that's a feeling that never went away, never diluted.

"It's very, very special and comes with a responsibility on and off the pitch. It's a great honour and one people need to keep hold of."

Wales will be second favourites in Cardiff, but Speed warned England they will face a fight.

"We're going to give it a good shot," he said. "Obviously it's my first game so there's a lot of work to be done. But hopefully it's the first step on a ladder to reach the ultimate goal of qualification.

"The fact that it's England makes it a huge game and one we're desperate to do well in."