After leading the country to the final of Euro 2012, the coach has been given a pre-World Cup vote of confidence.
Cesare Prandelli has signed a two-year contract extension to remain as Italy coach.
The 56-year-old’s previous deal was due to expire over the summer, and his decision to stay will provide clarity for players and the FIGC as the buildup to Brazil continues.
Prandelli has been in charge since 2010, guiding Italy to the Euro 2012 final two years ago, then easing it through World Cup qualifying.
Reports suggested he was considering a return to club management, but he confirmed over the weekend that he was intending to stick with the national setup until at least the end of Euro 2016.
"At this moment I feel a great satisfaction," Prandelli told ANSA on Saturday. "I'm proud of the fact that the Italian Football Association has 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 it was the surprise winner of the 2006 tournament in Germany under Marcello Lippi's guidance.