FA approve Capello appointment

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Final discussions on the details of Capello's contract will take place on Friday, but sources close to the FA board say they have approved a deal worth £4million annually - after tax.

That will place Capello's earnings on a par with England captain John Terry's £130,000-a-week, and shows the FA are willing to spend big to secure the 'world-class' coach they have been looking for.

By contrast, Sven-Goran Eriksson was on a deal worth £4million a year and Steve McClaren on £2.5million - but the failure to qualify for Euro 2008 cost the FA at least £12million and probably considerably more in terms of damage to the England brand.

It is understood Capello wants to bring three or four fellows Italians with him for his coaching staff, including his trusted aide Franco Baldini as his assistant.

The 61-year-old has also expressed a desire to have English coaches as part of his set-up as well, and will decide who these should be at a later date.

Contrary to some reports however, Baldini will not fulfil the role of the FA's technical director.

FA executives spent most of Thursday in talks with Capello's advisors going through the details of the contract, and those will continue on Friday but the deal is all but done.

FA director of communications Adrian Bevington said: "Discussions have continued throughout the day between the FA and Fabio Capello's advisors.

"The FA board has also approved Capello's appointment as England manager subject to the successful conclusion of these contract negotiations."