Manager Gennaro Gattuso and Italy have agreed to mutually terminate his contract after their failure to qualify for a third successive World Cup.
Italy missed out on a spot at this summer's showpiece event when they were beaten 4-1 on penalties by Bosnia-Herzegovina in Tuesday's play-off.
Gattuso, who won 73 caps for the Azzurri during his playing career, was appointed as Luciano Spalletti's successor in June and won six of his eight games in charge.
An emotional Gattuso apologised for the defeat during his post-match news conference and admitted it was hard to digest.
With a heavy heart, having failed to achieve the goal we set ourselves, I consider my time as coach of the national team to be over, Gattuso said.
The Azzurri jersey is the most precious asset in football, which is why it's right to facilitate future technical evaluations right from the start. It has been an honour to lead the national team, and to do so with a group of players who have shown commitment and devotion to the jersey.
It follows the resignation of Gabriele Gravina as the head of Italy's football association (FIGC) on Thursday.
Former goalkeeper Gianluigi Buffon, who was working closely with the national side, also resigned as delegation head via Instagram., external
Italy are four-time World Cup champions but last featured at the tournament in 2014. No previous winner of the tournament has missed three World Cups in a row, which Italy now have after missing out on Russia in 2018 and Qatar 2022.
Who could replace Gattuso? - five top contenders
Massimiliano Allegri: Touted by many to be the fans choice for the vacant role, Allegri has achieved considerable success in Italian football.
Roberto Mancini: Could this be a chance for the return of the 61-year-old former manager? Mancini led Italy to Euro 2020 glory, beating England in the final.
Antonio Conte: The Italian is contracted to Napoli until 2027 but is another former national boss being linked with a return.
Fabio Cannavaro: Perhaps a wild card, he is the captain of Italy's 2006 World Cup-winning team despite lacking a scintillating managerial pedigree.
Stefano Pioli: The former AC Milan and Fiorentina boss, currently out of work, is likely to pursue the opportunity.
