they are to have a chance of repeating their exploits of 2010 when current coach Oscar Tabarez steered the 1950 champions to their first semi-finals appearance in 40 years.
After their win against England, spirits are high in the 'Celeste' camp.
"I have a group who are used to resisting pressure and who react to it in a good way," said Tabarez.
"The pressure was worse against England, or do you think that we'd gone shopping?"
But Tabarez, who spent spells with AC Milan and Cagliari in the 1990s, acknowledges the challenge the Azzurri pose.
"They've been world champions four times and we have a lot of respect for them. It will be a tough challenge for us but I believe we'll have our chances," said the 67-year-old.
Italy have had barely three days to digest defeat to Costa Rica, recuperate spent forces and get in the right frame of mind.
It is only a year since last the two sides met in the Confederations Cup, drawing 2-2 in the match for third place before Italy won 3-2 in a penalty shoot-out.
"It's going to be an especially challenging match. We played them last year in the Confederations Cup and after we played well for 35 minutes, they took over," said Prandelli.