Milan already have one foot in the last eight after a dominant 4-0 first-leg win over Arsenal at San Siro, while Claudio Ranieri's men are set to take on Marseille and Walter Mazzarri's side face Chelsea.
Prandelli has talked up the Serie A representatives' chances and feels there could be three Italian teams in the next round.
"I am confident in all three Italian teams making the next round of the Champions League," Prandelli told Tuttosport.
"Milan have virtually guaranteed their place in the quarter-finals after their game against Arsenal."
"Inter are having a season of ups and downs and lately have gone through a difficult time but the players are able to revive the Nerazzurri."
"In a one-off match Napoli can beat anyone; today all clubs are reluctant to play Walter Mazzarri's team in a decisive game."
When quizzed about Euro 2012 and the inclusion of controversial striker Mario Balotelli, Prandelli was quick to defend the Manchester City attacker.
"Let him mature, he is only 21. Unfortunately, in Italy there is no time for young people to mature," he said.
"If you score a goal, you are a champion and they put you on the front page. Then the week after scoring a goal if you say something wrong then you're immature."
"In Italy it is difficult to handle the psychological pressure."
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