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His debut match in charge will be Italy's 2024 European Championship qualifier in North Macedonia on September 9.
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.
European champions Italy, who missed out on a place at the World Cup in Qatar, finished top on 11 points from six games, one point above second-placed Hungary who needed to avoid defeat to secure a place in their first Nations League semifinals.
Italy missed out on soccer's global showpiece again after they suffered a 1-0 defeat at home to North Macedonia in Thursday's play-off semifinal.
Since lifting their fourth World Cup trophy in 2006, they have not played a knockout game in the showpiece event, having only won one group stage match at the finals in that time.
Italy have not lost for 36 consecutive matches, breaking the 35-match unbeaten run record that had previously been shared by Spain and Brazil.
Mancini's men, who are on a national record 34-match unbeaten run, played an attractive brand of football, but were also willing to win ugly when the situation demanded.
The National, a newspaper representing freedom-minded Scotland, featured Mancini on the front page a la Mel Gibson in the film Braveheart, with the headline: “Save us Roberto, you are our last hope."
This is only England's second appearance in a major final but will be Italy's 10th.
The coach admitted the Azzurri had to suffer to reach their first major tournament final in nine years.