Capello led Madrid to their first Liga title in four years last season, but the club, led by president Ramon Calderon, opted to stick with their plan to hand the reigns over to former Getafe coach Schuster.
"The polls reveal that 70 percent of Madrid fans wanted me to stay permanently, but the president had other ideas," he told Pantelleria.
"It is necessary to accept the decisions that arrive from the top."
Capello, 61, ruled out a quick return to management for the coming season.
"[I have] no intention of returning to coaching for the moment," he said. "[It will be] a period of transition for me."
Madrid took the Spanish title on the final day of the season at home to Mallorca. With fierce rivals Barcelona hammering Nastic in Tarragona, Madrid had to take three points in their Santiago Bernabeu home.
Capello revealed that he only started to worry about the outcome of the season during that crucial 90 minutes.
"At half time we were losing 1-0 and I saw how the players were down," he said. "For the first time I was scared that everything was slipping away because we could not afford to give that result away.
"From the start of the second half we could see that the match had changed and at the end, when the victory arrived, it was a great satisfaction."