The Gunners are yet to taste success in the competition although they reached the final in 2006.
But the ex-England boss thinks they are better equipped than Manchester United, Manchester City or Chelsea.
"Before the first round of Champions League games, I thought Real Madrid, Bayern Munich and Barcelona," Capello told a national paper.
"From England, I like Arsenal.
"To win the Champions League as a player or as a manager is a dream.
"It is the most important trophy for people working in football."
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