Flexibility is an important property for general access control system and especially in the Internet of Things (IoT), which can be achieved by access or authority delegation. Delegation mechanisms in access control that have been studied until now have been intended mainly for a system that has no resource constraint, such as a web-based system, which is not very suitable for a highly pervasive system such as IoT. To this end, this paper presents an access delegation method with security considerations based on Capability-based Context Aware Access Control (CCAAC) model intended for federated machine-to-machine communication or IoT networks. The main idea of our proposed model is that the access delegation is realized by means of a capability propagation mechanism, and incorporating the context information as well as secure capability propagation under federated IoT environments. By using the identity-based capability-based access control approach as well as contextual information and secure federated IoT, this proposed model provides scalability and flexibility as well as secure authority delegation for highly distributed system.