Italy coach Cesare Prandelli is set to sign a two-year extension to his contract that would see him remain with the Azzurri through to the 2016 European Championships.
Prandelli's contract with the Italian football federation (FIGC) was set to end after this summer's World Cup in Brazil.
However reports on Monday claimed the 56-year-old coach was on the verge of adding two years to his current deal.
The FIGC told AFP the finer details of the deal had yet to be ironed out but that a contract extension was "expected".
If confirmed, it would prove a boost to Italy ahead of this summer's showpiece where Prandelli's side will meet England, Costa Rica and Uruguay in Group D.
Prandelli took over the Azzurri helm following their first-round exit from the 2010 World Cup in South Africa and against all expectations led them to the final of Euro 2012, where Italy succumbed to a 4-0 drubbing by Spain.
They also finished third at the 2013 Confederations Cup, after losing 7-6 on penalties in the semi-finals against Spain, before beating Uruguay on spot-kicks in the consolation final.