Glenn Hoddle feels Fabio Capello's contract renegotiation ahead of England's departure for the World Cup has staved off a tricky period of uncertainty.
Inter Milan were keen to exploit a clause in Capello's deal, which would have allowed him to walk away after the tournament, and tempt him to the San Siro.
But today's closing of the loophole ensures Capello will remain in his post until the 2012 European Championships.
And Hoddle told Sky Sports News: "I think it's a boost for all England fans and the squad and for the FA as well.
"Everyone will be delighted that he's said he'll carry it through to the Euros. It's a nice positive way to set off to the World Cup.
"The media would have had a few days of 'is he going to stay, isn't he going to stay?'. It's a shrewd move - if they've made their decision, it's best they say it now."
Hoddle is optimistic over his country's prospects in South Africa, where they face the USA, Algeria and Slovenia in Group C.
England are third favourites with many bookmakers, behind Spain and Brazil, and Hoddle said: "I think it's quite an open World Cup.
"We've got a very good side, whether we've got a great side remains to be seen, but you don't have to be great side to win the World Cup - Italy proved that, they're the (reigning) champions and they weren't the best side in the tournament.
"Brazil don't frighten me too much, I've seen better Brazil squads. And with Spain - they're a great side, technically fantastic, but can they lead from the front? It's almost like a golfer going round the last nine on a Sunday, when he's never done it before, sometimes it gets you mentally.
"So England, Holland, Germany, Italy again - there's plenty of countries who've got a really good chance. If we get the momentum and the belief in the quarter-finals and semi-finals, if we get that far, we can win it."
The eye-catching feature of Capello's selection was the jettisoning of Arsenal winger Theo Walcott, and Hoddle backed that move.
"Theo is a very good young player and he's got great potential but he had the opportunity to get himself on this plane," he said.
"He's had the two games (against Mexico and Japan) to impress Capello, so Fabio's given him every chance and he hasn't really grasped it.
"For me, (Shaun) Wright-Phillips and (Aaron) Lennon, the wide options we've got, are probably the correct answers. But Theo's a young man and I'm sure he'll be back in that England shirt at some stage."
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