Blues skipper Terry looks set to regain the armband, having been stripped of the honour a year ago following allegations of an affair with the ex-girlfriend of then international team-mate Wayne Bridge.
England manager Capello has stated his intention to meet Rio Ferdinand to discuss the prospect of relieving the injured Manchester United defender of the captaincy he inherited in the wake of the Terry scandal.
Ancelotti was tight-lipped about the surprise news, revealing only his belief that Terry would be "happy" to lead his country again.
"I didn't say anything when the England team took away his armband," Ancelotti said.
"Obviously, this is the decision of the national team and he will be happy about this."
Source: PA
Source: PA