"This is a very emotional moment for me and it's a great honour to be here," said Capello, who will be aiming to end England's wait to repeat Ramsey's 1966 triumph at the World Cup finals in South Africa next year.
"I hope I can bring back the World Cup to stand alongside the Jules Rimet trophy that England won in 1966."
The bronze bust will be situated in the players tunnel at Wembley, and in the words of George Cohen, vice-captain of the 1966 team and who unveiled it with Capello, "it will remind every player to give of their best out on the pitch".
A number of players from the 1966-winning team including hat-trick scorer Geoff Hurst, Bobby Charlton, Ray Wilson, Martin Peters and goalkeeper Gordon Banks were at Wembley which has been re-built since England's triumph 43 years ago.
"Alf was a remarkable man and still has the respect of everyone who ever played for him. He was a disciplinarian but a man who you would give your all for," said Charlton.
"I think Fabio Capello has very similar qualities and hopefully he can achieve the same results as Sir Alf did."
Ramsey was England manager from 1963 until 1974 and died aged 79 in 1999.
