Terry had been a doubt for the Wembley date after picking up what was described as a "minor knock" in training earlier this week.
With England due to face Croatia in a World Cup qualifier on Wednesday where victory will seal their place at South Africa 2010, it was not thought Capello would take any risks with his captain.
However, Terry felt sufficiently confident to play a full part in training at Arsenal's London Colney training complex on Friday morning, and should start.
With Wes Brown and Paul Robinson also taking part, Capello looks like having a full squad available for what should be a thorough test for the Three Lions.
There was one absentee from training, Manchester United's Ben Foster, who has returned briefly to the North-West where his partner is due to give birth.
Foster is expected back later on Friday evening. His brief departure does suggest that West Ham's Robert Green will start his fourth consecutive international.