Prandelli praised England for changing their style of play since two years ago, when Italy knocked them out of Euro 2012 on penalties.
"It was an epic match and I feel that England is one of the strongest teams in the World Cup," said Prandelli.
"They have changed a lot, and I am so satisfied. We played a great game. We don't have players who are as powerful as England's but we have technically skilled players, and in the first half we had better ball possession."
Italy will face Costa Rica on Friday in their next match in Group D.