The 54-year-old admitted that he was unsure whether he would stay, but confirmed that the heavy loss to Spain has driven him to pursue "difficult" national challenge
The Azzurri surpassed everyone's expectations to make it to the final after a pre-tournament domestic match-fixing scandal and poor form in warm-up fixtures caused widespread pessimism.
However, the 54-year-old managed to bring the team together and lead an unlikely charge to the final, which saw Italy beat England and Germany.
Recent reports suggested that the former Fiorentina boss may leave his post as national coach, with the Italian apparently missing the day-to-day involvement at club-level.
But Prandelli insists he will not abandon what he has started with his country, with talks with Italian Football Federation president Giancarlo Abete set to commence this week.
"The project continues," he stated at his press conference. "I did have moments when I had certain thoughts, but the feeling with the Federation has always been really good."
The former Juventus player, who took over from Marcello Lippi in 2010 after a disappointing World Cup campaign, indicated that the final loss has motivated him to try and further develop the national team.
"Of course in my choice, this defeat is also a factor, the impossibility of leaving like this," he added. "This is a fascinating project, difficult but fascinating."