The Italian Football Federation (FIGC) has already expressed hope that the 56-year-old will continue.
“I’m torn,” Prandelli told Turin-based sports newspaper Tuttosport. “I miss the daily work on the pitch that you get when coaching a club, although I am perfectly happy with this role.
“I will reflect and we shall see. I will go to Brazil having already made a decision.”
The former Fiorentina coach made his debut on the Azzurri bench in August 2010 and led Italy to the UEFA EURO 2012 final, losing to Spain.
Prandelli has won 22 and lost just ten of his 50 games in charge so far.
Italy have been drawn with England, Uruguay and Costa Rica in Group D at Brazil 2014.