The Azzurri bowed out of the tournament on Sunday at the quarter-final stage after losing on penalties to Spain following a goalless 120 minutes in Vienna.

It was a bitter blow for the Italians who had hoped to follow their World Cup success in Germany two years ago with a European title.

"Resigning? It doesn't even enter my mind," said Donadoni.

"A missed penalty does not make me change my views on our performances in this tournament, I'm not stupid."

Just prior to the start of Euro 2008, Donadoni - who took over from Marcello Lippi two years ago - signed a contract extension with the Italian Football Federation that ran until the conclusion of the 2010 World Cup.

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

The 44-year-old Donadoni has said he would be the first to step aside if results were disappointing at Euro 2008.

The Italians failed to show the quality that saw them lift the World Cup in Berlin in 2006 and finish top of their qualifying group ahead of France having lost just once.

A 3-0 defeat to Holland in the opener, the worst defeat suffered by the Azzurri in a European Championship, was followed by a 1-1 draw against Romania.

Donadoni showed he was not afraid to make changes when he brought in five new players to take on Romania after the drubbing by the Dutch.

The Azzurri then beat France 2-0 to reach the last eight, thanks to an Andrea Pirlo penalty and a deflected free-kick by Daniele De Rossi. The French played a man light for an hour after Eric Abidal's dismissal.

The Italians struggled up front with none of their strikers scoring in their four games and two of their three goals came from dead ball situations.

Much was expected from Luca Toni, who had a fine season at Bayern Munich only to fail to find the target in four games for the Azzurri this summer.

The absence of captain Fabio Cannavaro proved a blow for Italy's defence, which looked shaky against the Holland and Romania.

Italian Football Federation president Giancarlo Abete did not confirm or deny whether Donadoni will continue in charge straight after his team's exit.

"In the next few days we will have a meeting with him and we will discuss the future," said Abete. "With cool heads, we will reason."

As for Donadoni, he is cool under pressure as he awaits his fate.

"I am calm," he said.