Prandelli, who took over from Marcello Lippi following Italy's shock first-round exit from the 2010 World Cup in South Africa, had been widely expected to extend his current deal with the FIGC.

A statement from the Italian federation said: "The FIGC and head coach Cesare Prandelli will be together until 2016."

After arriving late to talk to reporters following training at Coverciano, Prandelli said: "Sorry for the delay, it was precisely because we were just signing the contract.

"It's official, until the (2016) European Championships."

Prandelli took the helm of Italy for the first time in August 10, 2010 when the Azzurri were defeated 1-0 by Ivory Coast.

In total, the 56-year-old has led Italy for 51 games, winning 24, drawing 15 and losing only 12.

Italy, who won the last of their four World Cup titles in 2006, finished top of their World Cup qualifying group and in Brazil will meet England, Costa Rica and Uruguay in the competition's Group D.