Capello was one of the front-runners for the job at the San Siro following the departure of Leonardo in the summer.
And he is now back in the frame for the job as pressure mounts on new Inter coach Gasperini, who has suffered three defeats out of three including the shock 1-0 defeat to Trabzonspor in the Champions League on Wednesday.
Capello has instead urged the Nerazzurri to have faith in Gasperini and gave his take on the Serie A title race.
"Inter do not need me. Let us give the Coach time to do his work," he was quoted as saying in Football Italia.
"The Scudetto is between Milan, Juventus, Inter and Napoli. The Partenopei are doing very well and played a great game in the Champions League.
"Don't forget a draw away to Manchester City is a wonderful result, because I consider City to be without doubt among the strongest sides in Europe at the moment."
The Italian coach was also impressed with Udinese despite the Italian side failing to qualify for the Champions League after a play-off defeat to Arsenal.
"I saw both their games against Arsenal, both home and away. They did very well, but were not lucky and I know in football you need a bit of good fortune.
"Udinese have a fine Coach, the right mentality and a club that pays attention. As a manager, I know how important it is to have a strong club behind you."
Capello is expected to leave his England post after next year's European Championships.