(CNN) -- Marcello Lippi has returned for a second stint in charge of Italy after being named as Roberto Donadoni's replacement by the Italian Football Federation on Thursday.
Marcello Lippi returns as Italy coach after taking them to World Cup glory two years ago.
Lippi led the Azzurri to World Cup glory in 2006 but stood down after the tournament, paving the way for Donadoni to take up the reins.
Donadoni was dismissed earlier in the day, just four days after Italy crashed out of Euro 2008 at the quarterfinal stage following a penalty shoot-out defeat to Spain.
"Marcello Lippi returns as the leader of the Italian national team," said a statement posted by the Italian Football Federation.
"The president of the FIGC, Giancarlo Abete, named the new technical commissioner as a replacement for Roberto Donadoni. Lippi will be presented on Tuesday July 1 at a press conference in Rome."
The statement added: "President Abete met with Roberto Donadoni in the FIGC headquarters.
"In the course of the meeting, as already announced, they reviewed the work carried out in the last two years and how the European Championships had panned out.
"While confirming to Donadoni his sincere personal admiration and appreciation for the reliability and skilled professional work which marked his time at the helm of the national side, president Abete also communicated the FIGC's decision not to renew his contract, which had run to its natural expiry date."
Lippi began coaching in Italy's lower divisions before joining top-flight club Cesena. After stints with Atalanta and Napoli, his big break came in 1994 when Juventus knocked on his door.
Lippi won every possible title with the Bianconeri and, after eight years at the club, he resigned having become one of the most successful managers in Italian football.
Lippi was appointed to the helm of the Italian national team in July 2004 as the replacement for Giovanni Trapattoni.
The 60-year-old led Italy to the 2006 World Cup finals in Germany with relative ease, finishing five points clear of their closest challengers in qualifying before going on to lift the trophy against France on penalties.
Lippi's return had been widely touted in the Italian media this week after Donadoni came under fire for his side's displays in Austria and Switzerland.
The world champions started with a 3-0 hammering by the Netherlands followed by a shaky 1-1 draw against Romania -- with only a late Gianluigi Buffon penalty save keeping their hopes alive.
They took advantage of that reprieve by beating France 2-0 in a winner-takes-all clash before going down to Spain in a shoot-out after a dire goalless draw.
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