The coach revealed a two-year addition to his current deal, which expires in the summer, has been offered to him and he plans to accept it
The coach has been in charge of the Azzurri since 2010, guiding his charges to the Euro 2012 final two years ago then easing them into the World Cup finals in Brazil.
Last year it seemed that Italy would need a new coach after the World Cup with Prandelli allegedly wanting to return to club football.
However, recent reports suggested he has had a change of heart and the coach confirmed on Monday that he has every intention of sticking with the national set-up until at least the end of Euro 2016.
"At this moment I feel a great satisfaction," Prandelli told ANSA, who claim that the former Fiorentina boss will sign the deal and make it official in the coming weeks.
"I'm proud of the fact that the Italian football association have proposed a two-year renewal to me, regardless of the outcome of the World Cup.
"For this reason I have given my full availability."
This summer Prandelli will be hoping to replicate Italy's efforts eight years ago, when they were surprise winners of the 2006 tournament in Germany under Marcello Lippi's guidance.