Prandelli's future has been the subject of much speculation in recent times, with the 56-year-old set for talks with the Italian FA (FIGC) after Italy secured qualification for the 2014 FIFA World Cup with a 2-1 win over Czech Republic on Tuesday.
Former England boss Capello, has been touted as a potential replacement for Prandelli, should the former Fiorentina and Roma manager choose to step down.
However, Capello has ruled out that possibility, insisting that he will retire when his tenure with Russia comes to an end.
"I will not be Prandelli's replacement," Capello told Fox Sports Italia.
"I will close my career as a Coach after the experience with Russia."
Milan manager Massimiliano Allegri is considered to be one of the favourites to take over from Prandelli, but Capello believes that he should continue to hone his skills at San Siro.
"He (Allegri) is too young and I would advise him not to become a national team coach, but rather continue his growth process working every day on the training ground," he added.
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