The Bavarian club announced on January 16 that the former Barcelona boss will take over from Jupp Heynckes at the end of the 2012-13 season, despite reported interest from Chelsea, Manchester City and AC Milan.
"I don't think he has [insulted Serie A]," he told Repubblica.
"Guardiola made a conscious decision with his family to search for something new. The Bundesliga has enormous potential, fantastic facilities and has also recently changed its mentality."
Prandelli, who led the Azzurri to the 2012 European Championship final, also believes that Guardiola will be rejuvenated by his break from football.
"Guardiola has realised the dream of every coach and had the strength and courage to do so; he has enjoyed his family and his victories," he continued.
"He has been refreshed. Doing this after four or five years of daily work is significant. If you never stop then you probably stop enjoying things, including the victories."