The world champions lost 3-0 against Brazil yesterday to see their campaign in South Africa come to an end.

"It's the most difficult time since I took over the national team," said World Cup-winning coach Lippi, who took over for a second spell from Roberto Donadoni after Euro 2008.

"We have not played good football. We take the criticism and we go home bitter, disappointed and sad."

Italy opened the tournament with a 3-1 win over the United States but then lost 1-0 to Egypt.

Needing a win over Brazil last night, Lippi's side were drab and unimaginative.

He said: "We turned in three under-par performances that are not in line with our expectations - even if Brazil is the strongest team in the world and it's not easy to beat them."

Italian Football Federation president Giancarlo Abete was critical of his side.

"It has been an ugly Italy," he said. "We deserved the defeat and it's right that we are out of the Confederations Cup.

"We played at a low rhythm and we have to learn from this elimination and recover the significant gap in competitiveness."

The Italian press have blamed Lippi's squad selection, with 11 players in the group not members of the Azzurri's Euro 2008 squad.

Despite the result, Lippi was able to take some positives from the tournament.

"The Confederations Cup has helped me to clarify my ideas," he said. "It has allowed me to evaluate veteran players and the others.

"There is still time to work before the World Cup and I never said that this group will be the group that will play in South Africa next year."

In the meantime, Italy will focus on qualifying for the World Cup.

The Azzurri currently lead Group Eight, one point clear of the Republic of Ireland and with a game in hand.

Captain Fabio Cannavaro, who equalled Paolo Maldini's record 126 appearances for the Azzurri yesterday, said: "The Confederations Cup should not distract us from our main aim which is to qualify for the World Cup.

"In a year's time we will return to South Africa and we will see a different Italy."