Prandelli submitted his resignation after failing to guide Italy out of the group stage at the 2014 FIFA World Cup in Brazil.
The announcement, which was made in the wake of the country's 1-0 Group D defeat to Uruguay, came despite Prandelli having signed a two-year contract extension prior to the tournament.
The Turkish giants have been on the lookout for a new coach since parting company with Roberto Mancini last month, and a move to Istanbul would represent Prandelli's first role outside his homeland.
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