The 64-year-old - who was considered fortunate to remain in charge after England's disappointing exit in the FIFA World Cup™ - said that he was too old to consider another coaching job.
"At the moment I think of nothing else but Euro 2012 with England," said Capello, who is regarded as one of the greatest club coaches. "After that I will go into retirement.
"Unfortunately I am old, I no longer have the time; this will be my last experience on the bench."
Capello, who guided AC Milan to four league titles and the 1994 UEFA Champions League final where they overwhelmed Barcelona 4-0, has been coach of England since 2008.
While he easily qualified them for the FIFA World Cup, he received heavy criticism for how they performed in South Africa - eventually losing 4-1 to Germany - and was perhaps saved from the sack because he had extended his contract prior to the tournament.
While they are unbeaten in their three EURO 2012 qualifiers they were held 0-0 by minnows Montenegro on Tuesday at Wembley and trail the Balkan country by three points, though they have a game in hand and a superior goal difference.