Fabio Capello has signed an amended contract to commit his future to England until after Euro 2012, the Football Association have confirmed.
The amendment removes a break clause in the deal and puts an end to Inter Milan's hopes of appointing Capello as Jose Mourinho's successor.
The news will be a boost to England as they head to South Africa for the World Cup.
Following the loss of Mourinho to Real Madrid, Inter president Massimo Moratti confirmed Capello - who made his name as a manager in charge of city rivals AC - was on his shortlist to replace the Portuguese boss.
The 63-year-old had been in the process of amending his £6million-a-year contract, to take out a clause that would allow either party to terminate the arrangement prior to the start of England's European Championship qualification campaign, only for that to stall following the departure of Lord Triesman as FA chairman.
The pair had shaken hands on a proposal to remove the escape clause, and Capello wanted reassurances the men who matter within the FA thought exactly the same way. Talks with Club England chairman Sir David Richards satisfied the Italian as he made his two-year commitment.
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