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Sacked by Real Madrid in June 2007, just 11 days after leading the club to the title, Fabio Capello resolved to wait patiently for the chance to make his long-held dream of becoming England manager a reality. When Steve McClaren was sacked in November after England failed to qualify for Euro 2008, the position became vacant, but in early December it seemed as if Capello would be up against a formidable rival for the job - José Mourinho.

Capello chose to lie low. He had stated his interest and, for now, there was nothing left to do. He knew that Brian Barwick [the FA chief executive] would be canvassing opinion, taking in different viewpoints and, for now, merely listening. And so the entire Capello family, including sons Pierfilippo and Edoardo, went off to Istanbul for some sightseeing on the Bosphorus.

It was there that Pierfilippo received a call from Giovanni Branchini, one of Italy's most high-profile agents. He wasn't working for Capello in any official capacity, but he nevertheless was “in the loop”. “You're going to get a call from someone at the FA in the next half-hour,” Branchini told Pierfilippo. “Keep your phone on.”

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Sure enough, less than 30 minutes later, Pierfilippo's phone rang and the words “private number” flashed on his mobile. It was Simon Johnson, the FA's director of corporate affairs. He advised Pierfilippo that half a dozen people claiming to represent Capello had been in contact with them. Not wanting to create confusion or be led up blind alleys, they were keen to “cut through the bull****” and speak directly to Capello's camp.

Thus, against the wintry backdrop of Istanbul's Hagia Sofia, first contact was made. Pierfilippo was told that, at this stage, there were no more than three or four names left in the running and that Capello was one of them. Was Capello interested? Pierfilippo said that “in principle” he was, but obviously would have to talk about contracts and other details.

The voice on the other phone seemed relieved. “OK, then. For the next ten to fifteen days you won't hear from us. Then, once we know what the situation is, we'll call you.”

And, just like that, the FA “went dark”. Upon reflection, Capello had no way of knowing whether the voice on the other end of the phone was genuine, beyond the fact that Branchini had told him someone would call. But, at the time, what mattered was that the wheels had started to turn.

Mourinho was waiting too. While he made no statements, members of his entourage worked the media, suggesting that the FA needed to “hurry up” because various clubs were on his case. Mourinho, as you do in these situations, was playing his hand, just as Capello, in a different way, was playing his. Capello's camp knew Mourinho was in the driving seat, but also trusted in the fact that the FA would let them make their case before making their decision.

Then, just after the FA received Mourinho's “Club England” dossier, Pierfilippo's phone rang again. It was the FA. If you want to come up to London, we'd love to have a chat.

Sure enough, Capello was still in the running. The reasons why became even more obvious on Monday afternoon. Mourinho issued a statement on [his agent Jorge] Mendes's website, ruling himself out once and for all. He said that he had had “useful discussions” with Barwick, Sir Trevor Brooking and others about the England job. But, “after deep and serious thinking”, he was placing himself out of the running. The decision not to proceed with Mourinho had, according to a source, been made the evening before.

Forty-eight hours elapsed between the moment the FA received Mourinho's “Club England” dossier (assuming the dossier was, in fact, delivered; FA sources would neither confirm nor deny this) and the decision not to proceed. What had prompted the climbdown? Different sources offer different explanations.