For the second successive edition, four-time champions Italy will not be playing a fourth match at the World Cup after a 1-0 defeat by Uruguay yesterday sent the South Americans through with Group D winners Costa Rica.
Prandelli resigned immediately and, in surreal scenes following the match in Natal, Italian football federation (FIGC) president Giancarlo Abete followed suit.
"I will not go back on my decision," said the dapper 56-year-old Italian coach, rebutting Abete's claim he would try to change Prandelli's mind.
He said there was work to do from grass roots level all the way to Serie A, where the "lack of collaboration" from those running the country's elite league, as well as a general lack of support, was a hindrance.
"We have to rebuild from the bottom up, starting from the juniors we have to instill admiration for what the national team represents," said Prandelli.
"We're the only national team that leaves (for the World Cup) without the support of its own people, who then rely on us to carry the hopes of a nation.
"We were jeered, whistled at and insulted. We were almost embarrassed to come here.
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