He was dispatched following a short meeting with England boss Fabio Capello at Wembley.

He told The Sun newspaper – which signed him up last year as a columnist – that he was “gutted” at being sacked. “It hurts so much, but I will fight back,” he added.

Terry will have little time to dwell on his loss as his Chelsea side take on Arsenal in the pressure-cooker atmosphere of the London derby tomorrow.

He will no doubt be on the receiving end of unforgiving chants and witticisms from the terraces throughout the game.

Perroncel, 33, looked stunned and mouthed “Oh my God ... he’s been dropped” as the news broke late yesterday afternoon.

The model had just announced she would not be selling her story and was said to be “very sad” on learning about Terry’s fate.

The Football Association has been desperate to avoid a crisis in the run-up to this summer’s World Cup finals in South Africa.

Reports about Terry’s relationship with Ms Perroncel, the former partner of Terry’s fellow England star Wayne Bridge, had put pressure on Capello to act.

The initial reports, which came after a High Court gagging order taken out by Terry’s lawyers was lifted, were followed by further allegations.

Capello, who has a reputation as a disciplinarian, informed Terry he had been relieved of his captain’s armband after the Chelsea star drove to Wembley for a crunch meeting.

The player, who described the captaincy as the “ultimate honour” when he was first appointed in 2006, later vowed to continue to serve his country.

In a short statement he said: “I fully respect Fabio Capello’s decision. I will continue to give everything for England.”

As Terry was learning his fate, Ms Perroncel, who has a son with Wayne Bridge, stood quietly by her publicist Max Clifford as he read a statement on her behalf.

Moments later she turned, open-mouthed in shock, as she heard Terry had been stripped of the captaincy.

The petite model shook her head and mouthed: “Oh my God... he’s been dropped” as she digested the news.

Speaking on her behalf, Mr Clifford said: “Vanessa would also like to add that she finds it very sad that John Terry has been dropped as England captain.”

In her statement Ms Perroncel said: “In recent days I have been the centre of a great deal of press speculation and comment.

“I would like to put on record my thanks to Max Clifford for his advice and help at this difficult time.

“The details of my friendship with John and his family have been the subject of intense and wholly unfair and untrue media speculation. As Max has already said, much of the material in the press is inaccurate.

“I now find myself subject to other unsubstantiated and false claims which have appeared in the papers over the past few days. This has only added to the pressure which my family and I have been under.

“The media has sought to pore over my private life and that of my family, which is very upsetting.

“I have decided I do not want to speak publicly about the speculation since it only seems to add more fuel to the fire.

“I have a three-year-old son and he is my main concern. I do not believe speaking to newspapers or the media is in his interest or my own.

“I do not wish to add anything more to what I have said.”