Antonio Conte said Italy have a bright future ahead as his tenure as coach ended with a defeat to Germany on penalties in the Euro 2016 quarterfinals on Saturday.
Giampiero Ventura will replace Conte, who will take over Chelsea before the Premier League resumes next month.
Conte's two-year spell in charge of the Azzurri might not have ended the way he hoped, but the manager said his squad still have a lot of promise.
"I think that this is a generation which can grow because many of these lads are experiencing a major tournament for a first time and you need games like this to grow," he said.
"I'm very optimistic for the future of Italian football."
After Leonardo Bonucci's 78th-minute penalty cancelled out Mesut Ozil's opener for Germany, the quarterfinal was decided from the penalty spot, where both teams missed three times before Manuel Neuer stopped Matteo Darmian's effort in the ninth round and Jonas Hector struck the winning effort.
Conte said Italy have nothing to be ashamed about after playing the World Cup champions even for 120 minutes.
"Against a strong side, we demonstrated that this is a tough team where all our opponents respected us and respected us a lot," Conte said.
"The national team gives you emotion and stimuli and I hope this European Championship will leave a legacy, of love for the shirts we were wearing."
"I think the biggest victory for me is having worked with this group of lads. From the kitmen to the cooks - everybody who was part of this marvellous experience, this is what has given me the greatest satisfaction.
"I had the honour of working with these people who gave me everything. When you do everything, nobody can criticise you at all and these lads went beyond the call of duty, giving absolutely everything and I think people recognise this.
"You love your country and the shirt you are wearing."
Despite exiting the tournament, Conte said he would not do anything differently, and hailed his team for restoring Italy's former glory.
"The only regret I have from this European Championship is these penalties. Nothing else; no regrets," he said. "These lads really showed everything.''
"I don't like to make evaluations, I prefer to leave that to others. What interests me is that I had an incredible experience with these lads, making Italy respected and feared by everyone.
"This is not a goodbye, it is an arrivederci."