Fabio Capello has resigned as England manager, the Football Association has confirmed.

Capello quit after a meeting with FA chairman David Bernstein and general secretary Alex Horne at Wembley.

Analysis David Bond BBC Sports Editor Clearly Fabio Capello's reaction to the FA's decision to remove John Terry as England captain, and his decision to air his frustrations on Italian television, have been the final straw. I was told if Capello was prepared to back down then it probably would have been brushed under the carpet and he would have continued until after Euro 2012. It seems he has gone into the meeting, felt his authority had been undermined and could not continue. It has been a seismic shock for the England team and everybody involved in it.

An FA statement read: external-link "The Football Association can confirm that Fabio Capello has today resigned as England manager."

On Monday, the Italian, 65, publicly challenged the FA's decision to strip John Terry of the captaincy.

The FA's statement continued: "The discussions focused on the FA Board's decision to remove the England team captaincy from John Terry, and Fabio Capello's response through an Italian broadcast interview.

"In a meeting for over an hour, Fabio's resignation was accepted and he will leave the post of England manager with immediate effect."

Bernstein said: "I would like to stress that during [the] meeting and throughout his time as England manager, Fabio has conducted himself in an extremely professional manner.

Analysis Phil McNulty Chief Football Writer, BBC Sport "With Capello gone, the timing is perfect for England to benefit from the impetus that almost inevitably follows a new appointment and the arrival of fresh ideas and a different voice ahead of this summer." Read more of Phil McNulty's blog

"We have accepted Fabio's resignation, agreeing this is the right decision. We would like to thank Fabio for his work with the England team and wish him every success in the future."

A media conference with Bernstein and the Club England management team will take place at Wembley Stadium on Thursday at 1200 GMT.

The FA will not be making any further comment until the media conference.

Wednesday's meeting was the first time Capello had met the FA since their decision to remove the armband from Terry pending the outcome of his court case in July.

Terry, 31, denies a charge of allegedly racially abusing QPR's Anton Ferdinand.

On Sunday, Capello told Italy's state broadcaster RAI he did not believe someone should be punished by sporting authorities before a court had reached a verdict.

TOP SIX MANAGER RECORDS Pld Won Draw Lost Win % Fabio Capello 42 28 8 6 66.7 Sir Alf Ramsey 113 69 27 17 61.1 Glenn Hoddle 28 17 6 5 60.7 Ron Greenwood 55 33 12 10 60 Sven-Goran Eriksson 67 40 17 10 59.7 Sir Walter Winterbottom 139 78 33 28 56.1

"I thought it was right that Terry should keep the captain's armband," said Capello, whose first game in charge was on 6 February 2008, against Switzerland.

"I have spoken to the [FA] chairman and I have said that in my opinion one cannot be punished until it is official and the court - a non-sport court, a civil court - had made a decision to decide if John Terry has done what he is accused of."

FA head of elite development Gareth Southgate suggested Under-21 head coach Stuart Pearce will be in charge for England's friendly against the Netherlands at Wembley on 29 February.

"Stuart Pearce is in the building and with the under-21s," said the former England defender.

"But you have to think for the summer - can you get the person you want for the longer term? Because the leading candidates are with clubs at the minute.

"Harry Redknapp is one of leading candidates but Tottenham will have something to say about that and Daniel Levy is not going to want Harry to leave without a fight, so there's an awful lot to work out in the next few weeks."

Former England captain Alan Shearer said: "England should be managed by an Englishman and I would go along with Harry Redknapp as the outstanding candidate. He's a genius at motivating players."

"Let's move on and get someone who wants to manage England in a major tournament. Managers come and go and you have to be professional as a player.

"They'll want to put on the white shirt and go out there and play regardless of who's in charge."

Another possible candidate to succeed Capello is West Brom manager Roy Hodgson, who was tipped to replace the Italian after the 2010 World Cup.

However, before the FA made its decision, the vastly experienced Hodgson plumped for an ill-fated spell with Liverpool before moving on to the Hawthorns.