Former Manchester City and Barcelona manager Pep Guardiola has turned down the opportunity to coach the Italy national team, a source familiar with the discussions told Reuters on Friday, confirming media reports.

The 55-year-old Spaniard, regarded as one of football's greatest managers, held talks over becoming Italy's head coach, with the country's football federation (FIGC) president Giovanni Malago suggesting financial flexibility could be shown for a candidate of his stature.

Italy have been searching for a new coach since Gennaro Gattuso stepped down in April after the four-time world champions failed to qualify for a third successive World Cup.

FIGC also sounded out Brazil coach Carlo Ancelotti before holding discussions with Guardiola, Italian technical director Paolo Maldini said on Thursday.

Guardiola left City at the end of last season after a glittering decade in charge in which he won six Premier League titles, including an unprecedented four in succession, as well as three FA Cups, five League Cups and the Champions League.

Before arriving at City in 2016, Guardiola enjoyed similarly remarkable success at Barcelona, where he won two Champions League titles and three LaLiga crowns, before adding three Bundesliga titles during his spell at Bayern Munich.

Italian football is facing one of its deepest crises in decades, following an early collective exit from European club competitions and last season's failure to reach the World Cup.

The appointment of a new national team coach is seen as the first step in a wider effort to rebuild a youth development and talent pathway system that has deteriorated significantly in a country where football remains a national obsession.

With Guardiola no longer in contention, attention is turning to other candidates.

Former Italy midfielder Andrea Pirlo has been linked with the role in Italian media reports, while Roberto Mancini, who guided the Azzurri to the European Championship title in 2021, has also been cited as a possible candidate.