Following his playing career, Donadoni began a career as a manager in 2001, which included spells with Italian clubs Lecco, Livorno and Genoa. He was later appointed head coach of the Italy national team, succeeding Marcello Lippi, who resigned after having won the 2006 World Cup. At Euro 2008, with Donadoni as coach, Italy reached the quarter-finals of the tournament, losing to eventual champions Spain on penalties. On 26 June 2008, Donadoni was dismissed despite having signed a contract extension prior to the beginning of Euro 2008, using a clause in the contract which allowed termination if Italy did not reach the semi-final. He was replaced by Lippi, who returned as national team manager. Following his position as Italy head coach, Donadoni managed Napoli, Cagliari and Parma, until the latter club's bankruptcy in 2015. He then joined Bologna the following season.