Italy coach Roberto Donadoni will likely have the remaining two years on his contract annulled without formally being fired, the Italian football federation indicated yestersday.

Donadoni is expected to soon be replaced by his predecessor, Marcello Lippi, after Italy lost to Spain in the quarter-finals of the European Championship on Sunday.

Donadoni signed a two-year extension before the tournament, but the deal includes an escape clause that can be put into effect within 10 days of Italy's defeat.

"The contract stipulates that if the team does not reach the semi-finals, both sides have 10 days to validate the contract or consider the situation no longer suitable and therefore void," federation president Giancarlo Abete told local media at an Italian Olympic Committee meeting.

"So, I would not have to fire anyone if we decide not to confirm the coach, with whom I must speak with in the next few days. The agreement stipulates simply that the deal be voided."