capello584

Fabio Capello has been retained by the English FA to take the team forwards to the European championships in 2012. ((Alessandra Tarantino/Associated Press) )

England has decided to keep Fabio Capello as coach despite the  team's poor performance at the World Cup.

Five days after a 4-1 loss to Germany knocked the English side out of the tournament in South Africa, the Football Association says that its board had "unanimously agreed Fabio is the best man to continue managing the England team."

England finished second behind the United States in Group C and advanced to the round of 16, but then lost to the Germans.

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

"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. We will look to introduce new players to give the team new energy and I will use all my experience to take England forward."

Richards said the four-man Club England board gained the approval of the FA Board to keep Capello on.

The coach who guided AC Milan and Real Madrid to multiple titles started work in January 2008 after England failed to qualify for the 2008 European Championship under Steve McClaren. Capello has a contract through Euro 2012.

He led the team to the World Cup with an impressive record of nine wins in 10 qualifying games. But a squad that included Wayne Rooney, Steven Gerrard, Frank Lampard and John Terry failed to play as well in South Africa as they do individually for their club teams.

Despite an early goal by Gerrard, England was held to a 1-1 draw by the United States after goalkeeper Robert Green muffed a routine shot by Clint Dempsey.

The team was then held to a 0-0 draw by Algeria, a team it was expected to beat easily, producing one of its worst ever World Cup performances. In their final group match, the English beat Slovenia 1-0 to advance.