Prandelli and Dutch national boss Louis van Gaal have emerged as favourites to take charge at White Hart Lane in the summer after the World Cup finals, with speculation continuing that the north London club will look to replace Tim Sherwood.
Sherwood was promoted from youth boss to succeed Andre Villas-Boas in December, and he has earned many plaudits for his stewardship - but rumours around his role continue.
While van Gaal has admitted he could be interested in Spurs, Prandelli - who has been in charge of the Azzurri since 2010 - has revealed he is actually set for talks over a new deal.
"Me to Tottenham in the next season? This is fantasy football," he told Italian TV station Rai.
"It's too soon to talk about my future, after the friendly with Spain in March we will have a meeting with (the FIGC president, Giancarlo) Abete and the federal leaders."