The Italian resigned from his position with the national team in February after he fell out with the Football Association for stripping John Terry of the captaincy.
"I want to be a coach for another two years," the 65-year-old told Sky Sports News.
"I love London, I prefer to coach in Premier League. In Italy I can coach only if it will be a interesting project."
Capello has previously been linked with a role in the Far East following his resignation two months ago.