England manager Fabio Capello has openly challenged the decisionby the English FA to strip John Terry of the captaincy.

Capello was known to be upset that Terry was removed as skipper on Friday - a decision taken by Football Association chairman David Bernstein without any consultation with the £6million-a-year manager of the national side.

The decision came three months after Capello had been given full authority to deal with the Terry issue as he saw fit, selecting him as captain for the friendly win over Sweden on the basis the defender was innocent of racism charges until found guilty.

Interviewed by national Italian broadcaster Rai 1 at Stamford Bridge yesterday afternoon, where he attended Chelsea's thrilling 3-3 draw with Manchester United, Capello stated openly how unhappy he was.

Asked whether he was in agreement with "the federation's decision regarding Terry?", Capello replied: "No, absolutely not."

Former Football Association chief executive David Davies has suggested that Capello may be in breach of contract after he openly challenged the decision to strip John Terry of the national team captaincy.

Speaking to BBC's Breakfast Time show this morning, Davies said that Capello may have breached his contract with his comments and could face action from the FA.

"It is being taken very seriously by the FA because it may be that Fabio Capello has breached his contract," said Davies. "You have to ask what his motive is. You have to suspect he wants to prevent John Terry retiring as a player before Euro 2012 but there are wider issues.

"You could have what some of the media are calling a morality circus while England are trying to win the second major tournament in football.

"A contract may have been breached, there is strong leadership now at the FA from David Bernstein. Last week he wasn't slow to take things forward and he may not be slow to do so now."