Friday's draw in Ukraine pitted the Italians against reigning world and European champions Spain, as well as Croatia and the Republic of Ireland.
And while Spain are one of the favourites to take out the title next summer, Prandelli is also concerned about the threat Ireland and Croatia could pose, especially considering the Irish are currently managed by legendary Italian Giovanni Trapattoni.
"It's a very difficult group," Prandelli told Rai. "We didn't want to meet Trapattoni for many reasons.
"Plus we'll meet the world champions. We have to be well prepared in June, because it will be a very tough tournament for us.
"I don't know who will be the worst opponent between Croatia and Ireland, it will depend on the physical shape in June.
"I know that Trapattoni will try to get the best results until the end. Trapattoni told me that he wanted to bring Ireland to train in Italy before the tournament, but now he will change his plans."
And Prandelli is hoping to be boosted by some positive news on the injury front by the time the finals come around next summer, in the form of strike duo Giuseppe Rossi and Antonio Cassano, who are both out for the considerable future.
"I hope I will have Rossi and Cassano back fit. In the next few months, we will try to understand whether this is possible.
"If I won't have them at my availability, I won't change our system of play, so we will still play with three midfielders and a trequartista."
In the absence of Rossi and Cassano, Prandelli has turned to Manchester City striker Mario Balotelli and Inter Milan hitman Giampaolo Pazzini in recent matches.