© Press Association 2010.

Fabio Capello is to remain as England manager, the Football Association confirmed this afternoon, bringing a swift end to speculation about the Italian's future.

The decision was taken following a meeting of the four-man Club England board, which decided unanimously to keep Capello, despite the Three Lions' woeful performance at the World Cup. The full Football Association board subsequently ratified the recommendation, which means Capello will now continue until the end of Euro 2012.

"I am more determined than ever to succeed with the England team," said Capello. "Sir Dave Richards has called me to tell me everyone at The FA wants me to continue."

He added: "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."

Crucially, while many former players, including Alan Shearer, demanded Capello's sacking, those far closer to the action adopted a different approach.

Bolton chairman - and senior FA figure - Phil Gartside, threw his weight behind Capello, which was seen as crucial given he is a long-time ally of Club England chairman Sir David Richards.

Another member of the FA hierarchy, David Sheepshanks, urged caution at virtually the same time as Roy Hodgson, the overwhelming favourite to replace Capello, was being installed as Liverpool manager.

"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," said Richards. "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."