Fabio Capello (photo) plans to relax rather than return to coaching in Italy after blaming a “misunderstanding” for his exit from England job.

The Italian quit on Wednesday after being overruled by his employees at the English Football Association, who decided to strip John Terry of the captaincy due to his pending racism trial.

“I haven’t run away. I left because there was a misunderstanding,” Capello told Italy’s Mediaset television in Lugano, Switzerland yesterday. “I was very happy there, but there are times when you just decide to leave.”

Capello had planned to leave the England job when the European Championship end in July and had insisted he would not be seeking another coaching role after that.

The 65-year-old Capello’s view does not appear to have changed, despite Inter being touted as a possible destination this week for the former Roma, Juventus and AC Milan coach.

Asked if he would coach again in his home country, Capello responded: “Not in Italy, Absolutely not. For now, I want to relax.”

The Italian TV reporter asked Capello what Britain’s Queen Elizabeth II thought about his resignation after four years in charge of England.

“The Queen is above it all,” he said.