Italy coach Cesare Prandelli says he is resigning after his team was eliminated from the World Cup following a 1-0 defeat to Uruguay.
"At the end of the match I spoke to the president of the federation, I have told them I am going to resign from my position," he told reporters.
"When there is failure, the person in charge must take responsibility," added Prandelli, who only extended his contract last month.
Italy was reduced to 10 men by a red card for midfielder Claudio Marchisio in the second half and Uruguay went on to score the winner in the 81st minute of Tuesday's Group D match.
Prandelli, who criticized the red card decision, announced his resignation at the start of his post-match news conference.
Minutes later, Italian Football Federation president Giancarlo Abete, sitting next to Prandelli, announced he was also resigning.
Abete said the federation would hold a meeting on Italy's return to discuss Prandelli's decision to quit, saying he hoped the coach would withdraw his resignation.
Abete said his own decision to leave was "irrevocable."
Prandelli took over from Marcello Lippi as coach in 2010, after Italy were also knocked out in the first round in South Africa as defending champions.