Cesare Prandelli has insisted that he will remain as manager of the Italian national team following speculation that he was planning to step down.

The 54-year-old sparked questions over his future with the Azzurri after claiming that he missed the day-to-day running of club management.

Despite his initial comments, Prandelli has admitted that he wants to stay on following Italy's 4-0 defeat to Spain in the Euro 2012 final last night.

"The project continues," Sky Sports News quotes Prandelli as saying. "I did have moments when I had certain thoughts, but the feeling with the Federation has always been really good.

"Of course in my choice, this defeat is also a factor, the impossibility of leaving like this. This is a fascinating project, difficult but fascinating."

Prandelli became the Italy boss in 2010.