Former Chelsea manager Mourinho, who worked with England stars such as Frank Lampard and John Terry for three years at Stamford Bridge, says the Three Lions, who disappointed at the World Cup, will never win under Capello.
"It is clear. Capello will not work for England," Mourinho told the Daily Mirror. "He does not know the players. They are frightened of him and they can't play for him."
"For me, it is a mess for England. Players need clear tactics. They cannot be confused about what they have to do. It is the manager's fault. And it is a big shame."
England take on Bulgaria next week at Wembley in their first Euro 2012 qualifier, followed by a trip to Switzerland on September 7, and Mourinho thinks it will be more of the same from former Real boss Capello.
"The problem is the manager. He has a one-track relationship with players. Ask anyone here at Real Madrid. He can't change. You cannot go around just shouting at players. They need to feel special."