Italy coach Roberto Donadoni has announced he intends to continue in the post despite his side's exit from Euro 2008.

The Azzurri bowed out of the tournament on Sunday at the quarter-final stage after losing on penalties to Spain following a goalless 120 minutes in Vienna.

It was a bitter blow for the Italians who had hoped to follow their World Cup success in Germany two years ago with a European title.

"Resigning? It doesn't even enter my mind," said Donadoni. "A missed penalty does not make me change my views on our performances in this tournament, I'm not stupid."

Just prior to the start of Euro 2008, Donadoni signed a contract extension with the football federation that ran until the conclusion of the 2010 World Cup.

The Italian Football Federation announced the new deal as a reward for the former AC Milan star who took over from Marcello Lippi two years ago.

However, the new contract includes a reciprocal escape clause that can be put into effect within 10 days of Italy's exit from the tournament in Austria and Switzerland.

The 44-year-old tactician has said he would be the first to step aside if results were negative in the European tournament.

And Donadoni will have to weather the storm after a less than impressive performance in the tournament by the world champions.

The Italians failed to show the quality that saw them lift the trophy in Berlin in 2006 while finishing top of their group ahead of France having lost just once in their qualifying campaign.

A 3-0 defeat to Holland in the opener, the worst ever defeat suffered by the Azzurri in a European tournament, was followed by a 1-1 draw against Romania.

Donadoni showed he wasn't afraid to make changes when he brought in five new players to take on Romania after the drubbing by the Dutch.

The Azzurri then beat France 2-0 to reach the last eight, thanks to an Andrea Pirlo penalty and a deflected free-kick by Daniele De Rossi. The French played a man light for an hour after Eric Abidal's dismissal.

The Italians struggled up front with none of their strikers scoring in their four games and two of their three goals struck came from dead-ball situations.

Much was expected from Luca Toni, who stole the limelight at Bayern Munich this campaign, only to fail to find the target in four games for the Azzurri.

The absence of captain Fabio Cannavaro proved a blow for Italy's defence, which looked rattled against the Holland and Romania.

Italy's football chief Giancarlo Abete did not confirm or deny whether Donadoni will continue in charge straight after his team's exit.

"In the next few days we will have a meeting with him and we will discuss the future," said Abete. "With cool heads, we will reason."

As for Donadoni, he is cool under pressure as he awaits his fate.

"I am calm," he said.

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