Carlo Ancelotti has been offered the vacant role of head coach of the Italian national side, according to Sky in Italy.
Ancelotti has been out of football since being sacked by Bayern Munich in September following a 3-0 defeat to Paris Saint-Germain in the Champions League.
The former AC Milan, Chelsea and Real Madrid manager held talks with Italian Football Federation commissioner Roberto Fabbricini and sub-commissioner Alessandro Costacurta in Rome on Monday night.
Sky in Italy understands the meeting lasted an hour-and-a-half and specific topics such as backroom staff were discussed between the two parties.
Italy are currently without a permanent head coach after sacking Gian Piero Ventura in November, in the wake of the Azzurri's failed bid to qualify for the 2018 World Cup in Russia.
It is believed Ancelotti has been offered a two-year contract with the national side, although the 58-year-old is yet to agree to the deal which is likely to be less lucrative than his previous contract at Bayern.
However, Costacurta played down his meeting with Ancelotti and insists no official offer has been made.
"Carlo was in Rome for personal reasons," he told Sky in Italy. "I always stay in that hotel and we found each other there. We did not talk about the job, we only joked about the opportunity.
"You have to talk about many things, the program and finances, but we could not talk about them. Since we are loyal to the rules, we talked about something else.
"It is true, there is a vision that could see Carlo, like others, on the bench of the national team, but the rules are important and we must follow them.
"The deadline is the 20th May and you know I wouldn't go against the rules. Unfortunately we spoke about something else."