Elimination in the group stages after defeats to Egypt and Brazil followed a difficult few weeks for Serie A, with AC Milan's Kaka sold to Real Madrid and other top players threatening to leave the stuttering league.
"We need reconstruction and not just the national team. Let's start with the infrastructure, the stadiums, but also the youth teams," the 35-year-old Juventus defender told reporters.
Promoting young Italians such as Inter Milan's teenage fullback Davide Santon is the obvious answer but Cannavaro warned that the quality was lacking.
"Enough with this story about the oldies, if I really annoy people then my place is up for grabs but Lippi makes the decisions," added the defender, who equalled Paolo Maldini's all-time Italy caps record of 126 against Brazil.
"I don't see any phenomenons around in Italian football. There are no more Tottis, Baggios or Del Pieros. Today it is enough for a defender to be tall, cute, blonde and a dribbler and they think that makes them a good player."
