He has been joined by another Italian, the chairman of Ferrari and Fiat, Luca Cordero di Montezemolo, in offering their support to Madrid, which will be facing Chicago, Rio de Janeiro and Tokyo next Friday (October 2) when the International Olympic Committee will pick the host city for 2016 at its Session in Copenhagen.
The 63-year-old Capello has close links with the Spanish capital having twice managed Real Madrid.
During his first spell with the Spanish giants in1996-1997 he guided the club to the La Liga title.
When he returned for a second spell in 2006-2007 he took over a side having had one of its longest spells without winning a trophy and, with the help of David Beckham, they won the league title for the first time since 2003.
Capello said: "It has to be Madrid for 2016."
Montezemolo, who participated in the recent "Forum Marca" with the Spanish Secretary of State for Sport Jaime Lissavetzsky and Mayor of Madrid Alberto Ruiz Gallardón, said that because of his great friendship with the Mayor, having secured Spanish bank Santander as a sponsor for his Formula One team and having had a Spanish test driver, Marc Gené, there was no question over his loyalty to and support of Madrid 2016.