City have the upper hand in the last-16 clash after their impressive come-from-behind victory at the Santiago Bernabeu in February.
The two clubs were meant to meet again in the return fixture in Manchester on March 17, yet the coronavirus outbreak has led to a suspension of the European season.
UEFA announced earlier this month it remains committed to completing the calendar by the end of June, though only if the "situation should improve" on the continent.
In an interview with AS, former Madrid boss Capello claimed the delay may actually aid his old club, even though they have a deficit to overcome on their travels.
"For me, it changes everything," Capello said. "With this break there is no favourite.
"We do not know, if it is played, how the teams will be at that point. There are no favourites, no one knows."
Vinicius Junior set up Isco to open the scoring for Madrid in the previous meeting with City, the former one of a number younger players given opportunities this season under Zinedine Zidane.
Rodrygo has also contributed in Europe during the campaign, including the teenager scoring a hat-trick in a 6-0 home win over Galatasary in the group stage.
Capello hopes Madrid will manage the two Brazilians – as well as their other rising stars – carefully, something he attempted to do during his second spell in charge of the LaLiga giants.
"We're waiting for them to explode," the Italian said of the current crop coming through.
"In my second spell at Madrid, we signed Marcelo, [Fernando] Gago and [Gonzalo] Higuain. In December, the president came to me and said, 'Why don't you put them on, Fabio?'.
"'Because they are kids', I told him, 'and you have to wait a while. They are the future, they can make history later'.
"The only one of them who did little was Gago, while the other two did their part. They needed experience and character.
"You have to sign young people and then use them little by little, taking care of them. You cannot give them the responsibility now."
A panel featuring Fabio Capello, Jurgen Klinsmann, Ronald Koeman, Luis Figo and Zinedine Zidane made a range of recommendations after its inaugural meeting in Nyon, Switzerland.
The group also called for referees to get tougher with diving players by being "more decisive" in dealing with those who attempt to gain free-kicks or penalties through con tricks.
UEFA, which is European football's governing body, said discussions were "engaging and constructive" as the elite board considered the Laws of the Game, which are set by the International Football Association Board (IFAB).
Also attending were the likes of Rafael Benitez, Petr Cech, Philipp Lahm, Michael Laudrup, Javier Zanetti, Patrick Vieira, Gareth Southgate and Rudi Voller.
UEFA was urged by the board to clarify that handball should not be called if the ball deflects off a player's body and onto their arm or hand, especially when the ball does not go towards goal.
It was also recommended that handball following a shot at goal should not automatically be punished by a caution.
The newly formed board met at UEFA's headquarters and said the European confederation should make the case to IFAB that its rules are too clear-cut regarding red cards for handballs that prevent a goal.
In a statement, UEFA said that when it comes to such a situation, the board "feels players should be sent off only if they deliberately and intentionally touch the ball with their hand/arm" and in other circumstances a yellow card should suffice.
UEFA chief of football Zvonimir Boban said: "Having such beautiful football minds around the same table proved to be not just desirable but necessary.
"It was a true honour to be part of such an open and genuine discussion, and I am confident that we have found reasonable solutions to overcome a few stumbling blocks that negatively impact what happens on the field of play.
"It might sound like a banality, but mistakes happen, and we should not stigmatise them, influenced by the shirt we wear. The handball rule, for example, will always be disputed, but we can make it more consistent and aligned with the game's true nature."
The 21-year-old midfielder has shone since Serie A resumed following the coronavirus-enforced break, having previously thought his season would be curtailed when he tore a knee ligament in January.
Zaniolo produced a superb performance in the 3-1 win at Juventus on Saturday, marking his first start since the reverse fixture on January 12 with a fine assist for Diego Perotti's second goal.
Capello believes the Italy international is a rare talent in world football.
"Zaniolo has physical power and strength and extraordinary quality," he said on Sky Sport Italia.
"He has potential not just for the [European] Golden Shoe, but he can aspire to something more, to the Ballon d'Or.
"I'm in love with Zaniolo. Everything is there in terms of strength, quality and speed, at the highest level.
"Other players have this potential, but not at his level."
Zaniolo, who joined from Inter in 2018, has made 32 appearances in all competitions for Roma in 2019-20.
Ronaldo played under the Italian coach for six months at Real Madrid before being sold to Milan in January 2007, having scored 104 goals in 177 appearances for Los Blancos.
The Brazil icon made just seven LaLiga appearances, scoring once, in that campaign after finding himself out of the team due to the arrival of Ruud van Nistelrooy and arguments over his weight.
Capello, speaking to Sky Sport Italia, had no doubts about Ronaldo's natural gifts but said his partying antics were a cause of consternation.
"The greatest talent I ever coached was Ronaldo," he said.
"But at the same time he was the player who created the most problems for me in the dressing room.
"He used to throw parties and do everything. Once Ruud van Nistelrooy said to me 'coach, the dressing room smells like alcohol'.
"Then Ronaldo went to Milan and we started to win, but if we're talking about talent then he was the greatest, without a doubt."
Madrid went on to win LaLiga under Capello in that campaign, while Ronaldo was released by Milan at the end of the 2007-08 season – during which he sustained a serious knee injury.
Coaches including Jose Mourinho, Fabio Capello, Zinedine Zidane, Carlo Ancelotti, Gareth Southgate and Fabio Capello have joined the 24-man UEFA football board, along with superstar former players Paolo Maldini, Luis Figo, Gareth Bale, Rio Ferdinand, Michael Laudrup, Philipp Lahm and Robbie Keane.
There is one non-European on the board, with Inter's Argentine vice-president Javier Zanetti joining a throng that also includes former Germany team-mates Rudi Voller and Jurgen Klinsmann, plus Netherlands boss Ronald Koeman, Rafael Benitez, Patrick Vieira and Eric Abidal.
The noticeably all-male board will hold its first meeting at UEFA's European House of Football headquarters on Monday.
European football's governing body said the group will "give an institutional yet independent voice of experience and expertise on fundamental football-related topics".
UEFA president Aleksander Ceferin said: "UEFA is delighted to see that the very ones who have shaped the game's history with their talents and philosophy through decades are gathered again around our common goal – to protect the game of football and its essential values. As we always say: football first!"
Ceferin is campaigning for clarity on football's handball rules, having recently described the law as "really obscure".
"No one understands it any more," Ceferin said. "So we really need a conversation here, finding solutions and clarifying some issues."
He said that would be an issue for the football board to look at, and it was confirmed on Thursday as being on the agenda for the meeting, along with discussions about the video assistant referee system, player behaviour and medical issues.
UEFA said its technical director and chief of football Zvonimir Boban would chair Monday's meeting, although he is not a member of the new board.
UEFA football board members: Jose Mourinho (Portugal), Carlo Ancelotti (Italy), Zinedine Zidane (France), Paolo Maldini (Italy), Fabio Capello (Italy), Javier Zanetti (Argentina), Luis Figo (Portugal), Philipp Lahm (Germany), Ronald Koeman (Netherlands), Gareth Southgate (England), Rio Ferdinand (England), Michael Laudrup (Denmark), Rafael Benitez (Spain), Roberto Martinez (Spain)
Predrag Mijatovic (Montenegro), Jurgen Klinsmann (Germany), Rudi Voller (Germany), Petr Cech (Czech Republic), Juan Mata (Spain), Robbie Keane (Republic of Ireland), Patrick Vieira (France), Henrik Larsson (Sweden), Eric Abidal (France), Gareth Bale (Wales).
