Mancini took charge of the team in 2018 after they failed to qualify for the World Cup, having previously not missed a World Cup finals since 1958.
He guided Italy to success at the European Championship in 2021 but the team once again failed to qualify for last year’s World Cup in Qatar.
In June, Italy claimed third place at the Nations League finals under Mancini.
“A significant page in the history of the Azzurri, which began in May 2018 and ended with the 2023 Nations League Finals, comes to an end,” the FIGC said in a statement.
“Taking into account the important and upcoming commitments for the UEFA Euro 2024 qualifiers… the FIGC will announce the name of the new national coach in the next few days.”
Following last year’s failed World Cup qualifying campaign, Mancini came under intense pressure in the Italian media to resign but received backing from the nation’s federation president to continue in the role.