England manager Fabio Capello has resigned after publicly challenging the Football Association's decision to strip John Terry of the team's captaincy.
The Italian coach submitted his resignation during an hour-long meeting with FA chairman David Bernstein and FA general secretary Alex Horne at Wembley Stadium.
The meeting was called to discuss the decision to remove Terry after he was charged with racially abusing QPR defender Anton Ferdinand.
Capello told Italian TV on Sunday that the FA had been "absolutely" wrong in making the decision, which was taken without consulting him.
Former FA executive director David Davies told Sky News: "I think it is very sad in one way, but perhaps it was inevitable.
"I talked privately with a number of people and I said, 'Where is the common ground, where is the compromise between his stated view that the decision on Terry was wrong and the FA's view?'"
The FA website said Capello would leave the post he has held for four years "with immediate effect".
::Read more - Capello's highs and lows as England boss
He quits just four months before the European Championship finals in Poland and Ukraine. His contract was due to expire after the tournament.
Mr Bernstein said: "I would like to stress that during today's meeting and throughout his time as England manager, Fabio has conducted himself in an extremely professional manner.
"We have accepted Fabio's resignation, agreeing this is the right decision. We would like to thank Fabio for his work with the England team and wish him every success in the future."
The FA, which is due to hold a news conference at noon on Thursday, also dismissed as "not accurate and not true" a story on an Italian football website in which Capello was quoted as saying the FA "insulted me and damaged my authority".
Italpress reported Capello as saying: "What really hit me and forced me to take this decision was the fact the much-vaunted Anglo-Saxon sense of justice, as they are the first to claim that everyone is innocent until proven guilty.
"In Terry's case, they gravely offended me and damaged my authority at the head of the England side, effectively creating a problem for the squad.
"I have never tolerated certain crossing of lines, so it was easy for me to spot it and take my decision to leave."
Capello's son Pierfilippo told Sky News: "I have spoken with Dad and he is fine.
"For the time being we are not going to say anything because that is the agreement we have with the FA, we shall see how things go and then maybe we will speak."
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