Fabio Capello has ended speculation over his future as England coach by signing an amended contract which will keep him in the job until after Euro 2012.

Capello had been linked with Inter Milan after the Serie A club hinted they would be keen on hiring him following Jose Mourinho's move to Real Madrid.

The Italian was believed to be unsettled by the recent resignation of English Football Association chairman Lord Triesman.

But, on the day he flew out to South Africa with his England squad, Capello agreed to sign a new contract which will see him through until the end of the European Championships in Poland and Ukraine.

Crucially, a clause allowing both he and the FA to review his position and potentially end his employment after the World Cup has been removed from the contract.

Triesman and Capello were reported to have shaken hands on an agreement to remove that break clause in Capello's STG5 million ($A8.81 million) a year contract and the former AC Milan coach was keen to ensure that was still the case despite his boss's abrupt exit.

The FA confirmed the agreement on Wednesday ahead of England's flight to Johannesburg, from where they will travel to their World Cup base, the Royal Bafokeng Sports Campus in Rustenburg, ahead of their opening match against the United States on June 12.

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