Fabio Capello agrees to take part in FA's 150th anniversary celebrations

• Capello to appear at ceremony in London on Wednesday
• Italian still aggrieved over resignation as England manager

Fabio Capello has made a peace deal with the Football Association that will mean he takes part in the organisation's 150th anniversary celebrations despite his lingering grievances after walking out as England manager last year over the John Terry affair.

Capello will be in London on Wednesday for the launch of the anniversary after a personal request from the FA's chairman, David Bernstein, for them to put their differences behind them. The Italian quit in protest at the FA's decision to remove the England captaincy from Terry once the date was set for the Chelsea player to stand trial over allegations he racially abused QPR's Anton Ferdinand.

Capello, now managing the Russian national team, was incensed that the decision had been taken above his head, walking out as a matter of principle despite it meaning he would not be able to take England to Euro 2012. His feelings on the matter have not changed but Bernstein has made headway during a series of telephone conversations over the last 10 days.

Privately, the FA had been expecting Capello to turn down the invitation, extended to all the previous England managers, to join Roy Hodgson, the current manager, for the event at the Grand Connaught Rooms in Covent Garden. However, Bernstein was encouraged by the response from Capello. Alex Horne, the FA's general secretary, has also been in contact.

"It's fair to say the nature of his leaving was not ideal but we're glad Fabio has recognised the importance of the occasion," an FA source said.

"This is a landmark occasion in the FA's history. He was delighted to be asked to be a part of it and we're happy to have him here."

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