The 29-year-old Roma midfielder has been the subject of interest from Chelsea and the Italy head coach believes a summer switch would benefit his progress as a player
The 29-year-old has spent his entire career with Giallorossi, but strong rumours of interest from Jose Mourinho at Chelsea could sway De Rossi to leave the club he adores.
Prandelli says a move elsewhere would be a good thing for the midfielder's development.
"Maybe leaving Roma would be a defeat on a personal level for Daniele De Rossi, but professionally I believe it would be a good thing," Prandelli told RAI.
De Rossi has made over 400 appearances for Roma, scoring 47 goals since his debut in 2001. He has won two Coppa Italia's in his time at the club, as well as the 2006 World Cup with Italy.
Prandelli also spoke about Mario Balotelli, saying that people's perceptions of the AC Milan striker are not always correct.
He added: "It's not up to him to be more mature but people see him with different eyes. Mario has always been ready. He was born ready."