ROME, July 4 (Reuters) - Dino Zoff quit as Italy coach on Tuesday after stinging criticism of his tactics in the Euro 2000 final defeat by France from opposition centre-right leader Silvio Berlusconi.

'I am not taking lessons in dignity from Berlusconi,' Zoff told a news conference 24 hours after the AC Milan president and former prime minister attacked his strategy as 'undignified.'

'I don't understand why someone has to undermine the work of someone else. I will reply to Berlusconi personally.'

Visibly angry, Zoff said Berlusconi had offended him and he had not slept on Monday night after returning from Brussels.

Berlusconi, in comments that jarred sharply with most other reactions to the Italians' performance, said he was indignant Zoff had not assigned a man to mark French playmaker Zinedine Zidane, saying the outcome would have been different if he had.

'We could have won and we definitely should have,' Berlusconi said. 'Even an amateur would have realised and would have won, by stopping Zidane... A professional coach cannot fail to see certain things. It was unworthy,' he said.

The Italian Football Federation said on Tuesday evening it had opened an inquiry to see whether there were grounds to take any action against Berlusconi as AC Milan president.

Zoff, who as a goalkeeper captained Italy to World Cup victory in 1982, has been coach since after the 1998 World Cup.

He exceeded all expectations by taking Italy to the Euro 2000 final. Italy lost 2-1 to France in dramatic fashion, conceding an injury time equaliser and subsequent 'golden goal.'

Zoff's resignation sparked an immediate chorus of 'Don't go Dino' from players, politicians and business leaders.

'They mustn't accept this resignation,' defender Fabio Cannavaro, one of the successes of Zoff's Euro 2000 squad, told reporters, adding that Zoff's leadership over the past two years 'confirms that he is a legend.'

Zoff, who was named as one of the world's top 25 footballers of all time alongside Brazil's Pele, England's Bobby Charlton and France's Michel Platini in a 1997 poll, remains the nation's most capped player with 112 appearances.

Juventus captain Antonio Conte also urged Zoff to think again 'for the good of Italian soccer.'

Giulio Andreotti, seven times the prime minister, is not usually known as a football fan but said the criticism was unjustified. 'A month ago, if anyone had said we'd even get to the final it would have been considered a great result.'

'Now we came second, after an equaliser half-a-minute before the whistle, I think it's really unfair to blame Zoff.'

Centre-left politicians blasted Berlusconi for attempting to make political capital out of the nation's favourite sport. Others said Berlusconi's criticism and Zoff's reaction were exaggerated.

Even business leaders weighed in Zoff's departure dominated the day's news. 'As a fan, I can only say that Italy is losing a great coach,' Chiccho Testa, chairman of utility Enel, told reporters.

And according to an opinion poll by state television RAI, nine percent of the 412 Italians interviewed agreed with Berlusconi while 83 percent disagreed. Some 63 percent said Zoff should not have resigned and 29 percent said he should have.

Zoff was due to meet Luciano Nizzola, president of the football federation and the man who once hailed him as a 'national monument,' on Wednesday to discuss his decision.

Nizzola defended in a statement the 'validity of Zoff's work, which was undisputable both from a technical standpoint and from the point of view of bringing the best out of a group of players of great technical and moral value.'

But on Tuesday Zoff seemed determined to stick to his guns.

'I've had to take decisions and I know that I'll lose out in the long run,' the usually taciturn Zoff said. 'I know what will happen. People will say I acted too hastily. I know I can't win, I've got experience of that,' he said.

Berlusconi, who is tipped by many to win a general election due next year, said he was flabbergasted by Zoff's resignation.

'I can't believe it. I have never offended anyone, least of all Zoff,' the billionaire media mogul said.

Berlusconi said he had been airing a tactical criticism, which he stood by, and was not referring to Zoff personally. 'I have no apologies to make to anyone,' he said.

Zoff's reaction was surprising given his dogged refusal during the Euro 2000 championship to appease public demands - such as repeatedly leaving crowd-pleasing striker Alessandro Del Piero on the bench.

'I've always been criticised a lot but that's part of the role of being coach,' he said after his side beat the Dutch on penalties in the semifinals with ultra-defensive play.

As a player, Zoff received most of the honours on offer. He won six Serie A titles with Juventus at the height of a career spanning more than two decades from 1961-1983.

In 1974, he went a record 1,143 minutes - more than 12 full internationals - without conceding a goal.

If Zoff declines to think again, the smart money is on his former Juventus and Italy team mate Marco Tardelli to take over as national coach.

Tardelli coached Italy's junior side to victory in the European under-21 championship in June.