But the 30-year-old has been given a second chance by the England manager, who confirmed on Saturday that Terry will take the armband for Saturday's Euro 2012 qualifier against Wales and into the future.
Terry, who was described as a 'natural leader' by Capello, said he has no qualms with the England manager after all this time and was thrilled to be working alongside himself once more.
"Anyone who ever asks me about Fabio, I can only say good words about him and that's the truth, regardless of what people might hear," the Chelsea defender told The Sun.
"People look at what's happened between us and think there must be trouble but there isn't."
"There's no problem, really. I've got nothing but respect for him. Hopefully, that's the same the other way."
"Fabio has been great. I've got to give him loads of credit for that."
"When he came in, tactically he was spot on in and around the place. I was really impressed with him, I genuinely was."
"Whatever's gone on, losing the captaincy and the like, I still think he's a great manager and right up there with the best of them, especially on the training field."
"When the manager made the decision in that meeting at Wembley I got up, shook his hand and assistant Franco Baldini's hand, and said I'd always give 100 percent whatever happens on the training field and off the pitch."
"He said he really appreciated that and hoped that would be the case. Since then he's said to me I've done that and he's been proud of me for that."
"Nothing changed for me. I love playing for England and I want to keep going for as long as possible and be involved as much as possible."