Reports in Italy suggest Prandelli, who assumed control from Lippi after the disastrous first-round World Cup exit of 2010, could step down after the Brazil finals - although the former Fiorentina boss is yet to comment.
Prandelli, 56, has revived Italy's fortunes, guiding the Azzurri to the final of the 2012 European Championships and to a third-placed finish at this summer's Confederations Cup, but he could soon make way for a younger coach as more and more Under-21 players graduate to the senior side.
But Lippi, who won the 2006 World Cup with Italy, does not think age would be a barrier should Prandelli wish to try his luck in domestic football once again.
The 65-year-old told the Gazzetta dello Sport: "He's 10 years younger than me and so I think he still wants to have that chance to build a squad he can work with on a daily basis.
"I don't think he would have any problem finding a club."
Referring to Italy's chances of lifting the World Cup for the fifth time next summer, the Guangzhou Evergrande boss added: "We all hope he can win it.
"But there are seven or eight sides that could do it."
AC Milan coach Massimiliano Allegri and former Manchester City boss Roberto Mancini are the front-runners to succeed Prandelli should he stand aside, according to the Italian press.