LONDON - The Football Association (FA) held talks with Italian coach Fabio Capello on Wednesday regarding the vacant England manager's position.

Real Madrid coach Fabio Capello laughs during a press conference after a training session in Madrid, in this Monday, Sept. 25, 2006 file photo. Capello, the former Real Madrid and AC Milan coach, is the new favourite to become England national soccer team manager after Jose Mourinho pulled out of contention. [Agencies] "I can confirm that Brian Barwick and Sir Trevor Brooking have today held talks with Fabio Capello in London," spokesman Adrian Bevington said on the FA Web site (www.thefa.com).

Barwick is the FA's chief executive and Brooking head of football development.

"I'm pleased to say that these discussions were extremely positive and without any problems.

"Fabio has tonight returned to Italy to honour a prior commitment. Understandably, further talks are now taking place between Fabio's advisers and ourselves.

The former AC Milan, Real Madrid and Juventus coach has become the favourite to succeed sacked manager Steve McClaren after former Chelsea coach Jose Mourinho withdrew on Monday.

"It would be a beautiful challenge. I am the right age," Capello told the Gazzetta dello Sport last month.

The 61-year-old was dismissed as Real coach at the end of last season despite winning the Spanish title and has been working as a commentator for Italian television.