Former Roma and Fiorentina boss Prandelli took the Azzurri reins immediately after the 2010 FIFA World Cup.
And the 56-year-old announced on Monday that he has put pen to paper on a fresh deal that will extend his stay in the national team hotseat to six years.
"Sorry for the delay," Prandelli said at a press conference. "But it was precisely due to the fact that we were just signing the contract.
"Yes, yes, it is official. Until the European Championships.
"Now we will not go into the details, we currently have an objective that is too important. From September we will talk about projects and programs.
"The availability (for the renewal) has been there for two months, this period was used to formulate the contract.
"The Federation also wanted to involve me with regards to image rights - the delay in signing has been down to these reasons."
Prandelli guided Italy to the final of Euro 2012, where they were beaten 4-0 by Spain, and faces a tough ask to get out of Group D at the forthcoming World Cup, after Italy were drawn alongside England, Uruguay and Costa Rica.
