Terry believes Cole and Wayne Rooney are the players who can unlock opposing defences as England search for the win against Slovenia which will earn them a place in the last 16.
Cole has played no part in the opening two games against USA and Algeria which both ended in disappointing draws.
Terry stressed he would never ask for Capello to pick Cole but knows the qualities of the former West Ham player should he be given a chance.
The central defender said: "I would never ask for Joe to be picked by England and I haven't done that at Chelsea.
"It is something that I would never do in my career, go and say 'this player should be in.' It is the manager's decision. That is what he gets paid to do.
"He has never come to me and asked me about that (Cole) and even if he did, I would feel a little bit uncomfortable giving my thoughts. Obviously I would probably be biased to Joe.
"But he is ready if called upon and eager to play. He is obviously a great player, one of the best players in our country. He came back from an injury and showed great form for Chelsea."
Terry admitted: "It still amazes me how the club have come to the conclusion of letting Joe go. We are disappointed with him going.
"But he can surely do things whether he starts or comes on for England."
Terry insists the England players will shed any pre-match nerves as soon as they walk on to the pitch to face Slovenia in Port Elizabeth.
He said: "Once you go out there, that fear is gone. You might have that little fear and butterflies before the game, but once you are out there that is totally gone.
"We are not afraid. We can accept people saying we played bad or this, that and the other but we don't accept things like that. I don't feel that.
"I can see why people say it because at times we don't play as flowingly as we do at a club. That frustrates people more than anything."
Terry is adamant England's participation in the World Cup is not about to end although he accepts criticism will be inevitable should they bow out.
He said: "We've had a great qualifying campaign and our World Cup is certainly not over. That is the way I am looking at it although we are not in the position we wanted to be.
"We know we will get stick if we don't qualify. I received a bit of that after not qualifying for the last European Championships.
"It goes on for five or six months, then dies down again until the next tournament comes along and we go again."