Internazionale are intent upon luring Fabio Capello back to Serie A after the World Cup, though the Football Association is confident the England manager will reject the Italian club and honour the remaining two years of his contract.

The Inter president, Massimo Moratti, is understood to have identified the 63-year-old as his "ideal candidate" and first choice to replace José Mourinho at the Champions League winners. Real Madrid dismissed Manuel Pellegrini this evening and are in the process of appointing the Portuguese, with negotiations continuing between the two clubs over a compensation package that could involve Mourinho and, potentially, the Brazil right-back Maicon swapping San Siro for the Bernabéu.

Capello, who has returned to Austria with his England squad to resume altitude training, is contracted to the FA until the end of Euro 2012 and this month removed a get-out clause in his £6m-a-year deal, signed in December 2007. That would have allowed him to talk to other interested parties in a two-week window after the World Cup, with his decision to have the clause cut considered as a very visible sign of his continued commitment to the England role.

However, Inter would be willing to treble his annual salary, after tax, in order to bring the former Milan, Roma and Juventus manager back to Italy. Moratti has long admired Capello and initially tried to hire him while he was coaching Juve in 2006 only for the country's match-fixing scandal to erupt. That agreement was duly scrapped, with Capello taking over at Real Madrid for a second spell instead.

The Italian coach has consistently stressed his commitment to England when asked about the frequent interest from Italy. "Juventus, Inter, [Real] Madrid, all the other teams, Milan … It's good for me, but I am just focused on the World Cup," he said on Monday after England's 3-1 friendly victory over Mexico.

Indeed, Capello tends to add the caveat that his future is ultimately decided by his employers at the FA, who could arguably have sought to have reviewed his position were England to endure a miserable World Cup in South Africa. However, Capello currently enjoys complete support within the FA, largely as a result of the resurgence in the side's form since he took over from Steve McClaren following the national team's failure to qualify for Euro 2008.

"I have a contract with the FA and the only way it will finish is if they decide to sack me," said Capello last week. "I see my name linked with lots of jobs in England, Spain and Italy, but I'm happy here with the FA. I like my job, I like this country and I don't think about my future. My future is about tomorrow and the World Cup."