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ITALY 2-1 BULGARIA
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Italian football bosses will decide on coach Giovanni Trapattoni's future at the end of the week following the nation's Euro 2004 exit on Tuesday.
"We will discuss Trapattoni's future in a federal meeting on Friday," said Franco Carraro, the president of the Italian Football Federation (FIGC).
Carraro said that Italy's performance in Portugal was "unacceptable".
"The players made a big effort but we played below our usual level in this competition," added Carraro.
Italy were eliminated from Euro 2004, despite two draws and a win in Group C.
They beat Bulgaria 2-1 in their final group game but Denmark and Sweden drew 2-2 and so progressed to the quarter-finals.
Carraro said: "The fact that we have taken five points in the group stages at least allows us to go home with dignity."
But it is unlikely to be enough to extend Trapattoni's unsuccessful four-year spell in charge of the national side.
Reports suggest that former Juventus coach Marcello Lippi could succeed
Trapattoni.
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My contract with the Italian Football Federation ends on 15 July and the future opens many doors
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Trapattoni, 65, has stated that he will not resign but admitted: "My contract with the Italian Football Federation ends on 15 July and the future opens many doors.
"We leave with our heads held high, especially because we deserved to win the previous match against Sweden.
"I am satisfied with my players' performance and with the work they have done against Bulgaria.
"We did our job against Bulgaria but unfortunately it was not enough, considering
the result from the other game.
"But unfortunately the other group results have not favoured us."