The 56-year-old was in charge of the Azzurri for four years before stepping down after their early exit at the World Cup.
Prandelli will now manage Turkish side Gala after agreeing to join the club on Monday.
"So many things happen in four years," he told the Italian Football Federation's official website. "You meet so many people and create so many bonds while creating a project.
"I would like to thank each and every one of those people who have accompanied me, advised me and supported me in my journey. It isn't possible to thank them individually because there are so many.
"I will do it with these few lines: It has been a privilege to work with you and I will always be proud of it. I know how much love and passion you have dedicated to the Azzurri jersey."
Prandelli's most notable achievement while in charge of Italy was guiding the team to the final of the 2012 European Championship.