Following their 4-2 defeat to Brazil on Saturday, the Azzurri will now face the winner of Group A, which, barring an incredible turnaround, will be world and European champion Spain, which faces Nigeria on Sunday.
The Italy coach thinks his side should be more brave going forward as it can take advantage of what has been a very open competition.
“Of course we will try to correct our errors, but this competition seems to have many goals, as teams are not sitting back,” Prandelli told Sky Sport Italia. “I imagine the match with Spain will be similar. We cannot make that many changes in the space of five days, after all.
“I hope everyone will be fit for the semifinal, then we will make choices on a tactical level. However you face Spain, you will struggle, as they are the strongest team in the world. We have to be more audacious.”
The last encounter between Spain and Italy finished 4-0 to La Roja in the final of the 2012 European championship, but because Spain was the defending World Cup champion, Italy gained entry to the Confederations Cup by virtue of just making the Euro 2012 final.