The Arsenal winger was a surprise omission from the England squad but has performed impressively this season for Arsenal, forcing his way into the first team.
Capello said: “He is one of the players after the World Cup I thought about a lot. I made a mistake not selecting him.
“He is one of the players who can make the difference. I should have taken him.”
He also implied that Jack Wilshere would take Gareth Barry’s role in midfield.