There has been criticism from both politicians and key figures within the Italian Football Federation over appointing Pirlo as national team coach because of his partnership with the Russian gambling company Fonbet, which according to Forbes has connections to the Russian regime.
"After learning last night that I am no longer a candidate for the position of national team coach of the Italian national team, I consider it my duty to clarify certain aspects," the 47-year-old wrote on Instagram on Monday morning.
He currently coaches Dubai United in the United Arab Emirates. Pirlo has been an ambassador for the gaming company since October last year.
"The professional collaboration that underlies the recent controversy arose within the framework of my work in the United Arab Emirates and is exclusively of a commercial and sporting nature. To attribute a political meaning to this collaboration is to attribute to me opinions that I have never expressed and for which I do not stand," he writes.
Pirlo played 116 games for Italy as a player, and has previously coached Italian clubs Juventus and Sampdoria.
Italy has missed three straight Men's World Cups.
