Antonio Conte will step down from his position as manager of Italy following Euro 2016.
Conte has been heavily linked with the managerial vacancy at Chelsea and this move increases the prospect of him taking over at Stamford Bridge.
The 46-year-old was appointed Italy manager in August 2014 shortly after resigning as coach of Juventus.
“He feels the need for the pitch, the everyday training,” said Italian FA president Carlo Tavecchio.
Conte led the Turin club to three successive Serie A titles prior to taking on the national job.
Chelsea sacked Jose Mourinho as their manager in December 2015 and appointed Guus Hiddink on an interim basis until the end of the season.
The Blues have improved from 16th to 10th in the league under Hiddink but have been knocked out of the Champions League and FA Cup.
They face missing out on next season’s Champions League unless they can make up an 11-point gap in nine games and secure a top-four finish in the Premier League.
“Chelsea are in a transitional period and have to see how to go on to try to regain the lost terrain to where they used to be,” said Hiddink recently.
What are Conte’s credentials?
Conte is a former Italy midfielder who made over 500 appearances for Juventus in his playing days, winning five league titles and a Champions League.
He won 35 caps for his country and was part of the squad that was beaten by France in the final of Euro 2000.
After spells coaching Arezzo, Bari, Atalanta and Siena, Conte returned to Juve as coach in 2011 and won Serie A at the first attempt, with his side going unbeaten throughout the season.
However, he was then charged with failing to report attempted match-fixing during his time as coach of Siena.
Conte pleaded his innocence but was banned for 10 months – a sentence that was reduced to a four-month touchline suspension.
Juventus retained their Serie A title despite Conte’s absence for part of the campaign, and won their third in succession the following season before his exit.