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Former Real Madrid coach Fabio Capello has admitted he would be interested in the England manager’s job.

Steve McClaren was fired following England’s 3-2 defeat by Croatia cost them a place at the Euro 2008 finals.

“It would be a beautiful challenge, said Capello. “I am the right age.”

Aston Villa manager Martin O’Neill and former Chelsea boss Jose Mourinho are the bookies’ favourites for the job.

O’Neill applied for the post after the departure of Sven Goran Eriksson, and may be reluctant to put himself in the frame again.

Mourinho, meanwhile, has been out of work since leaving Chelsea in September following a dispute with the club’s owner Roman Abramovich.

Capello, who has won titles with Real Madrid, Milan and Roma, is so far the only potential candidate to publicly declare an interest in coaching England.

The 61-year-old was sacked by Real at the end of last season despite winning the Spanish title as the club’s hierarchy was unhappy with his defensive style of play.

Who will be the next Permanent England Manager? Click here for the latest odds!