Fabio Capello to stay as England manager

Fabio Capello is to remain England manager despite the poor performance at the World Cup, the FA confirmed this afternoon.

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The announcement came after a meeting of the Club England Board and formal approval by The FA main Board.

The FA had been reportedly facing a settlement bill in the region of £12m if the Italian was removed after England crashed out in the second round to Germanu.

The FA said it had considered "all aspects of England's performance and operations at the FIFA World Cup".

It added that Capello was "the best man to continue managing the England team".

Capello and his players had been heavily criticised for their performances and conduct both in the build-up to the tournament and during the group stages.

Despite qualifying in style, England laboured on the pitch amid reports of disgruntlement with the management style and tactics within the dressing room.

Club England Chairman Sir Dave Richards said: "We are all still extremely disappointed at our performance in South Africa, and we believed it was important that we took some time to reflect on everything in a calm and considered manner back in England.

"After fully discussing our performance we remain convinced that Fabio is the best man for the job.

"He went into the World Cup with a reputation as one of World football's finest managers and we are confident Fabio will benefit from his first international tournament experience and this will undoubtedly make us all stronger for the Euro 2012 campaign."

FA Board Acting Chairman Roger Burden said: "The FA Board supports this decision. It is the right decision and will allow us now to rebuild for the future with Fabio leading us forward."

Capello said he was "more determined than eve"r to succeed with England.

He added: "Sir Dave Richards has called me to tell me everyone at The FA wants me to continue. I explained it is very important we use the disappointment as a motivation in the future.

"I can assure the fans I am now fully focused on our European qualifying fixtures, starting with the friendly against Hungary in August.

"We will look to introduce new players to give the team new energy and I will use all my experience to take England forward.

"I am extremely proud to be the England Manager, it means so much to me and I am determined to succeed."