The 56-year-old is rumored to be on Spurs chairman Daniel Levy’s shortlist given that he will leave his job as Azzurri boss following the World Cup this summer.
However, the former Fiorentina manager has moved to distance himself from the north Londoners, who are currently managed by Tim Sherwood.
"Me to Tottenham next season? This is fantasy football," Prandelli told Italian TV station Rai. "It's too soon to talk about my future, after the friendly with Spain in March we will have a meeting with (FIGC president) [Giancarlo] Abete and the federal leaders."
Prandelli has been in charge of Italy since May 2010, when he replaced Marcello Lippi following a disappointing campaign at the 2010 World Cup in South Africa.
He led Italy past England at Euro 2012, before guiding his side to the final where it was comprehensively defeated by Spain 4-0.
Tottenham currently sits 5th in the Premier League and had experienced a mini-renaissance under Sherwood until Sunday’s 1-0 defeat at Norwich.
Sherwood was appointed on an 18-month contract, taking him to the end of the 2014-15 season.