Guardiola had been the first choice of technical director Paolo Maldini and advisor Leonardo, who travelled to Barcelona for talks with the Spaniard, but he informed the federation he would not be taking the role, citing personal reasons rather than the financial terms on offer.
With Guardiola out of the running, Maldini and Leonardo moved quickly to Pirlo, who emerged as the clear favourite for the job almost immediately after Guardiola's decision became known.
Former Juventus goalkeeper Gianluigi Buffon, who had also been sounded out for a more prominent role within the federation set-up, similarly declined to get further involved, deepening the pool of high-profile names the federation had to work through before settling on Pirlo.
Pirlo currently manages United FC in Dubai, where his contract runs until 2027, and would need to reach a settlement to leave the club before formally signing with Italy, likely dissolving that agreement shortly before putting pen to paper with the federation.
Only the formal contractual details remain to be finalised before the former midfielder is confirmed as head coach, with the target of a four-year deal that would run at least through the 2030 World Cup. Reports in Italy suggest the deal is worth around β¬6m over four years plus bonuses, considerably less than the roughly β¬20m over the same period that had been on the table for Guardiola.
Pirlo's task will be to rebuild Italy after their third successive World Cup qualifying failure, with the aim of reaching next summer's European Championship and returning to the World Cup for the first time since 2014.
He takes over from Gennaro Gattuso, who left the role following the qualifying disappointment, with the federation hoping the appointment can draw a line under a difficult period for the national team, having missed out on the 2018, 2022 and now 2026 World Cups in succession.