The 56-year-old took over the Azzurri from Marcello Lippi after the 2010 World Cup, agreeing a four-year contract until the end of Brazil 2014.
With talks over his future due this month with the Italian Football Federation, speculation suggested he would be return to club management.
However, the Gazzetta dello Sport report that the former Parma and Fiorentina boss is in fact in line to agree a new four-year extension with La Nazionale.
Alongside seeing options to return to club level with a big club limited this summer, Prandelli is reportedly convinced for what would be an increased role in a structural reorganisation, to include his direct management of the national side at youth level too.
News on Prandelli and the FIGC’s intentions is expected to be confirmed shortly after next week’s friendly with Spain.
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