Donadoni signed a contract extension which ran until the conclusion of the 2010 World Cup shortly before Euro 2008.

The new deal was a reward for the former AC Milan midfielder, who took over from Marcello Lippi two years ago.

However, the new contract included a reciprocal escape clause which could be put into effect within 10 days of Italy's exit from the tournament in Austria and Switzerland.

And the FIGC have decided to act after the Azzurri went out of the tournament at the quarter-final stage following a penalty shoot-out defeat to Spain on June 22.