Roberto Donadoni is heading for the Azzurri exit after their disappointing Euro 2008 and World Cup winner Marcello Lippi is on the way back in, pundits here say.
Donadoni, 44, will see the head of the Italian Soccer Federation (FIGC), Giancarlo Abete, later this week and his future will be announced early next week, FIGC sources said.
Abete said Wednesday the FIGC will not have to pay extra for terminating the contract.
He said Donadoni's term would have been automatically renewed if Italy had beaten Spain on Sunday to reach the semi-finals.
Lippi, 60, won five Serie A titles and one European Champions League with Juventus before taking over Italy in 2004.
He has reportedly refused a few club offers since he stepped down after the 2006 World Cup win and is currently employed as a Sky Italia pundit.
