Current coach Allegri has seen his position come under intense scrutiny for much of the season, with the 18-time Serie A winners going into the mid-season break 13th in the table.
Their last outing saw Allegri's men beaten by Inter in the Derby della Madonnina, with Italy manager Cesare Prandelli and former Milan midfielder Seedorf linked with the job.
However, Capello - who won four Serie A titles and a UEFA Champions League as San Siro coach - claims it would be a big ask for Seedorf's first role in management.
"Clarence has ability and I have an excellent relationship with him," the current Russia coach told La Gazzetta dello Sport.
"I remember that it was me who advised him to go and play in Brazil seeing as he was thinking about the UAE and Russia a year ago.
"Evidently this experience is serving him well, but to immediately take the responsibility of the Milan job is something else."
Seedorf currently plies his trade in Brazil with Botafogo, having left San Siro in 2012.
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