Capello is the latest name to be tipped to take over from Carlo Ancelotti, who has made no secret of his desire to leave PSG and join Real Madrid.
Reports had indicated that Capello had signed a one-year deal to take over at the Parc des Princes.
However Russian Football Federation president Nikolai Tolstykh insists the former England boss is focused on his efforts to help the UEFA Euro 2008 semi-finalists qualify for the 2014 FIFA World Cup.
"Capello has a contract with the Russian Football Federation," he said.
"He has repeatedly talked about how happy he is with the Russian national side and that he intends to continue."
However, PSG starlet Marco Verratti has talked up his admiration of the former Milan boss, and believes he would be the ideal man to improve his game in the French capital.
"Capello would be perfect for me. He is a coach who has made history in Italian football," Verratti asserted.
"I'd be very happy. But I owe so much to Ancelotti, I will
be thankful to him for all my life."
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