The Italian Football Federation (FIGC) has already expressed hope that the 56-year-old will continue but Prandelli has yet to make up his mind.
"I'm torn," Prandelli said in an interview with Turin-based sports newspaper Tuttosport. "I miss the daily work on the pitch that you get when coaching a club although I am perfectly happy with this role.
"I will reflect and we shall see. I will go to Brazil having already made a decision."
The former Fiorentina boss made his debut on the Azzurri bench in August 2010 and led Italy to the final at Euro 2012, losing to Spain.
Prandelli has won 22 and lost just 10 of his 50 games in charge so far.
Italy have been drawn with England, Uruguay and Costa Rica in Group D in this summer's top tournament.