Roberto Mancini looks set to become Italy's new head coach after reaching an exit agreement with Zenit Saint Petersburg.
The former Manchester City boss signed a three-year contract with Zenit last year but the Russian side said it had been severed through mutual consent without any compensation payable.
"Zenit and Roberto Mancini have reached an agreement over early termination of his contract," the club said in a statement.
"The contract was cancelled by mutual consent of the parties without any indemnity payments."
Italian Federation [FIGC] commissioner Roberto Fabbricini said last week Mancini had agreed in principle to become the next manager of four-time world champions Italy, who failed to qualify for this summer's World Cup after defeat to Sweden in a two-leg playoff.
Mancini meanwhile said he would be proud to coach Italy, telling Italian radio: "If one day I got the chance to sit on the national team bench it would be something beautiful."
During his 17-year coaching career Mancini led Manchester City to their first Premier League title in 2012, and won three Serie A titles with Inter Milan.
He also won Italian Cups with Inter, Fiorentina and Lazio.
Italy have been without a permanent coach since Gian Piero Ventura was sacked after they failed to qualify for the World Cup for the first time in 60 years.