The Liverpool midfielder, who is currently on loan at Lille, last played for his country as a second-half substitute in England's 4-1 defeat to Germany in last year's World Cup.
"Fabio has not forgotten Joe," the Daily Star quotes a source close to Capello as saying. "He is keeping close tabs on him but would like to see him become an established regular in the Lille team first."
The Italian is thought to have sent England coaches to watch the 29-year-old during Lille's 3-1 win against Auxerre as well as the side's 1-0 defeat to Inter Milan in the Champions League on Tuesday.
The former Chelsea star has racked up 56 appearances for England in his career.