The former Fiorentina boss signed a two-year extension immediately prior to the World Cup but could not prevent a 10-man Azzurri side crashing out at the group stage
The former Fiorentina boss signed a two-year extension immediately prior to the tournament but could not prevent a 10-man Azzurri side crashing out at the group stage of a second successive World Cup, following the dismissal of Claudio Marchisio for a high tackle on Egidio Arevalo Rios.
"I never wanted to hear that I was stealing the money of Italian tax payers," he told reporters as he announced his decision at a post-match press conference.
"There was no need for a red card in the game but it changed everything. My resignation is irrevocable too."
But Giancarlo Abete, head of the Italian Football Federation, has also submitted his resignation and has confirmed he has asked Prandelli to reconsider his decision.
"I will go to the board and offer my irrevocable resignation too," Abete confirmed. "I had already made this decision before the World Cup.
"The new President of the Federation will have my complete support. I'm disappointed as a fan but we gave it our all.
"Prandelli has offered his resignation. When we get back, I will call a meeting with the Federation and hope he will withdraw it."