Ancelotti, one of the most successful managers in the game, was sacked by Bayern Munich back in September.
Bayern won the league title in Ancelotti’s first season in charge.
But rumours later emerged that he fell out with some key players at the club who were unhappy with his methods.
The Italian was dismissed after a 3-0 Champions League defeat to Paris Saint-Germain.
German veteran coach, Jupp Heynckes, was called in to take over until the end of the season and the club have lost just once in all competitions under his leadership.
Speaking with Sky Germany, Capello believes Bayern squad simply did not want to play under his compatriot.
He said, “Heynckes is back on the bench and everyone wonders how he managed to get the team under control immediately. I think it was the players who took everything in hand.
“The coach can do a lot of things, but if the players do not want to give that little extra, which they did not give to Ancelotti, you will not get an olive branch.
“They fought him, they wanted him to fly out. And to show that Heynckes is the right one, they give everything.”