FABIO Capello resigned as manager of England on Wednesday following the Football Association's decision to strip John Terry of the captaincy, the FA confirmed.

In a remarkable twist to one of the most dramatic days in English football history, Capello's resignation was confirmed just hours after his likely successor Harry Redknapp was cleared of tax evasion charges.

Capello's departure from the post followed talks with FA officials reported to be furious at the Italian coach's public criticism of last week's decision to axe Terry as captain.

Capello's position had come under scrutiny after he told an Italian broadcaster on Sunday that he disagreed "absolutely" with the dismissal of Terry, who faces a criminal trial for allegations of racially abusing QPR defender Anton Ferdinand during a Premier League match in October 2011.

Although senior FA officials were known to be unhappy with Capello's comments, the former AC Milan and Real Madrid coach was expected to remain for the final few months of his contract, which expires after Euro 2012.

However in a bombshell announcement released shortly after 7.20pm (1920 GMT), the FA confirmed that Capello's four-year reign was over.

The 65-year-old took over as England coach in December 2007 following the country's failure to qualify for the Euro 2008 final, signed a lucrative £6 million-a-year contract with a brief to halt years of English footballing under-achievement on the international stage.