Italy are poised to part company with coach Roberto Donadoni after their exit from Euro 2008, BBC Sport understands.

The Italian Soccer Federation has yet to confirm that Donadoni has left the post and reports in the Italian media say a meeting is set for next week.

Speculation about his future has been mounting since Italy’s quarter-final defeat by Spain on penalties on Sunday.

Donadoni, who took over in 2006, signed a two-year extension in June, which contained a get-out for both sides.

Donadoni said on Sunday: “Resign? The thought would never even entered my brain.

“I don’t have a reason. We only lost a game on penalties. You can’t say things work when you win but don’t work when you lose on penalties. We will talk and decide. It doesn’t make any sense to talk about whether I deserve to carry on.”

Italian football federation president, Giancarlo Abete, gave no clues as to whether his coach would be retained when asked after the defeat on Sunday.

“Over the next few days we will reflect and make a decision about this,” he said.

“It doesn’t make any sense to make a decision in the heat of the moment.”

He added: “In the next few days we will discuss what will happen. We’ll retrace our steps.”

Former Italy World Cup winning coach Marcelo Lippi is reported to be favourite to take over from Donadoni.

Ref From BBC SPORT