The Football Association wants coach Fabio Capello to take England at least to the semi-finals of the 2010 World Cup or Euro 2012, the FA said in a review published on Tuesday.
Capello, who took charge of England in January following their failure to qualify for next month's Euro 2008 finals, has so far won one match and lost another.
But the 61-year-old Italian said he was confident of achieving the goals set out in the 50-page review entitled The FA's Vision 2008-12.
"I think the team I have at the moment is capable of achieving these targets," Capello told reporters at Wembley Stadium.
"I believe you must always be positive. My personal objective every time I have coached and managed has been to get to the top.
"It is no surprise that these targets have been set and we should be confident with them."
The document noted that Capello's task was not helped by the number of foreigners now playing in England.
"It is no longer possible to consider the success of the senior men's team without acknowledging that the number of eligible players for it is declining," it stated.
FOOTBALL CENTRE
The FA announced it was pressing ahead with a new National Football Centre in the midlands and would be appointing an international performance director, responsible for all England teams below the senior men's team.
The FA wants 20,500 new teams created at grass roots level by 2012 and an additional 8,000 referees while retaining the 26,000 who already officiate at matches around the country.
The review was ordered following England's failure to qualify for Euro 2008 and David Triesman, the FA's new chairman told a news conference: "The FA is prepared to adopt a winning mentality, not just on the pitch but in everything we do and speak and act for the greatest sport in the world."
Triesman said he was like every other England fan. "I want us to win, I want us to be in the mix for every major tournament and that we are there with the prospect of winning."
Capello added that the National Football Centre at Burton was crucial to give the England team its own base.
According to the report, the centre will act as a "preparation base for all the international representative teams and a hub from where best practice can be shared".
Among the other 'Major Milestones' unveiled by the FA are successfully to bid to host the 2018 World Cup, for Wembley to be achieving an annual operating profit by 2012 and for the FA's Respect campaign to improve overall disciplinary performance by 25 per cent by 2012.
