The Italian coach is under contract with Madrid until June 2009 but has come under increasing pressure in recent weeks with Getafe coach and former Madrid star Bernd Schuster strongly linked to take over at the club this summer.

"I will not resign," Capello told the Italian media.

"I have not presented my resignation because I want to continue. I am under contract and I am very happy living in Madrid."

The 61-year-old joined Madrid from Juventus last summer and guided Los Merengues to their first Primera Liga title since 2003.

However, Capello's uneasy relationship with Madrid president Ramon Calderon has reportedly left the tactician out of favour at the club.

But Capello admitted earlier this week that he has every intention of being in charge of Madrid when the squad starts pre-season training on July 20.

"I have a clear conscience, knowing that I have done my job well," he added.