Serbian Mihajlovic surprisingly quit Serie A Catania earlier this week amid media speculation linking him with Fiorentina and Inter Milan.
The Italian soccer federation has spoken to Fiorentina about possibly making Prandelli Italy boss if Marcello Lippi steps down after the World Cup as expected.
"On Monday I met Mihajlovic," Fiorentina sporting director Pantaleo Corvino told Italian television. "He said he was now free but then the news arrived that his father had died and he had to leave. So let's wait and see."
Prandelli returned to Florence with Fiorentina from a post-season tournament in Canada on Thursday and made no comment to waiting reporters about the Italy job.
The Italy situation has become messy with Lippi declining to confirm he is leaving the world champions but the federation said a decision will be announced before the squad head to the finals in South Africa on June 8.
Champions League and treble winners Inter are looking for a new coach with Jose Mourinho poised to leave for Real Madrid.
Former Inter player and assistant coach Mihajlovic was quickly installed as one of the bookmakers' favourites to replace Mourinho when he suddenly quit Catania, only for the Fiorentina link to become stronger.
Media reports in Italy and Britain have also speculated Inter could target England coach Fabio Capello among others.
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