New players will give England new energy says reprieved Capello

Five days after the Three Lions suffered their humiliating World Cup exit to Germany – and having kept a discreet silence since Capello told the world the FA would give him a decision about his future "in two weeks" – Club England chairman Sir David Richards confirmed the 64-year-old will remain in his job.

The decision brings some much-needed clarity to the situation, even if the feeling persists Capello's position has been reinforced for all the wrong reasons.

With a potentially hefty compensation bill to pay should they dispense with the Italian, and viable alternatives reduced once Roy Hodgson agreed to succeed Rafael Benitez at Liverpool, English football's power-brokers knew that retaining Capello was an obvious move, just over four weeks after they agreed a new contract that runs until after Euro 2012.

It might not sit easily with those who called for Capello to be axed in the wake of that devastating 4-1 defeat in Bloemfontein, but Richards insists the right decision has been made.

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

"We are all still extremely disappointed at our performance in South Africa but 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. Undoubtedly this will make us all stronger for the Euro 2012 campaign."

The contract issue is bound to be raised in coming days as an example of Richards's folly, given he was one of the men who agreed to remove the break clause in Capello's contract.

However, sources within the FA have indicated the matter was not as clear-cut as Capello just being ushered out of the door for nothing, and compensation approaching 6m would still have had to be paid even if it had remained to be activated.

Nevertheless, it was a complication which, coupled with the lack of obvious alternatives if Harry Redknapp was discounted, as expected, means the correct conclusion has been reached, albeit with some caveats.

Senior figures within the FA have already suggested Capello will be urged to introduce new blood for the Euro 2012 campaign, which starts against Bulgaria at Wembley on September 3.

New faces could be introduced for the friendly with Hungary which precedes it, on August 11, with some established men now at risk given the so-called 'golden generation' has so obviously failed to deliver.

Having reached the World Cup with nine wins from 10 games, Capello has proved himself capable of steering the Three Lions through a qualifying campaign – and will be expected to do the same again.

"I am more determined than ever to succeed with the England team," he said. "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."