Prandelli's side's failure to beat Denmark and Armenia in the last week meant that they were not among the top eight sides in the FIFA world rankings released this morning.
"We aren't seeds? It's better that way," Prandelli told ANSA. "I prefer lower expectations and higher concentration straight away to excessive dreams.
"I am not frightened by the risk of meeting Brazil or Spain straight away. In fact, look at how it went for us at Euro 2012."
Italy topped qualifying Group B from Denmark and the Czech Republic.