Scholes rejected a place in Capello's 30-man provisional squad, pointing out he had not been given enough time to make his decision.
Yet Capello has revealed the initial conversations between Scholes and Franco Baldini were positive, before the Manchester United star got in touch the following morning to confirm some bad news.
"Franco spoke with him in the evening and he said yes," Capello told ITV.
"In the morning he said no because he preferred to stay at home."
As Scholes maintained his high standards into this season, producing man-of-the-match performances in the Community Shield and the opening Premier League match with Newcastle, there was further speculation the 35-year-old could be called up for the opening Euro 2012 double-header against Bulgaria and Switzerland.
However, it seems Scholes ruled that out as well.
"He said he is too old to play more games and in more competitions," said Capello.
"He prefers to be okay for Manchester United."