Terry’s replacement skipper Rio Ferdinand is injured and Steven Gerrard is expected to be handed the England armband for the friendly against Egypt on Wednesday.
Capello said: “John Terry will not be captain now or at the World Cup.
“If I am the England manager I think he will not be captain again.”
Capello explained: “There was only one reason for this – the problem with Wayne Bridge.
“It was not good because I always asked the captain to be an example for the young, the children, for the fans.
“It was not good. This is the reason [for ditching Terry]. I told him this.
“When I spoke with JT I was happy because he understood everything and explained what had happened.
“What happened between JT and Wayne Bridge is not normal. I have never experienced it before. This is a first for me.”