Montella has enhanced his reputation this season, with the Florence club sitting fourth in Serie A and reaching the Coppa Italia final as well as the last 32 of the UEFA Europa League.
Prandelli is expected to step down after the FIFA World Cup in Brazil when his contract ends and Montella has been linked with the role along with former Milan coach Massimiliano Allegri.
The 39-year-old believes he lacks the experience to take over the national team and is relishing the challenge at Stadio Artemio Franchi.
"Really I believe that it is too early," he said. "But I also say so because it is not a secondary project that we are carrying out (at Fiorentina).
"Even if I was out of contract, I am still too young, whilst around me there are highly qualified coaches who are able to do well."
Montella has a contract with the Serie A club until June 2017, having extended his deal with the club after an impressive first season in charge that saw them finish fourth.
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