Capallo’s England are in the second group of seeds for the Euro 2012 finals draw, UEFA confirmed on Wednesday.
England are alongside Euro 2008 runners Germany, 2006 world champions Italy and Russia in the second pot.
Reigning world and European champions Spain are in the first pot, along with 2010 World Cup finalists Holland and co-hosts Poland and Ukraine, who have already been allocated to groups
A and D respectively.
The Republic of Ireland, whose qualification for the finals was confirmed after the playoff victory against Estonia, are in the fourth group of seeds along with Denmark, the Czech Republic and France. That automatically rules out the prospect of Ireland play against France, who knocked them out in a divisive World Cup qualification play-off two years ago.
The draw for the finals will be made in Kiev on December 2.
The worst case scenario for England would be a group containing Spain, Portugal and France.
As well as that possible 'Group of Death' , there is also the chances of a 'Group of Debt' made up of below par Euro zone members Spain, Italy, Greece and the Republic.
A more likely group for the Italian’s team would be to be drawn against Poland - with England having already confirmed they will be based in Krakow - Greece and Czech Republic.
The pots have been decided based on the UEFA coefficient rankings, except for the co-hosts.