Totti retired after 24 years with Roma at the end of last season, moving into a director's role with the club and signing up for a UEFA B License coaching course.
However, the AIAC said that the 41-year-old has had a change of heart and decided to put his plans on hold.
"Francesco Totti has shown he is a great champion off the pitch as well as on it," an AIAC statement read. "Unable to commit to attending the course regularly and out of respect to his colleagues and course organizers, he has withdrawn from the chance to become a boss.
"We hope that this is just temporary. Despite being disappointed with Totti's decision, we hope to see him again in the future."
Totti's place on the course will be taken by another member of Italy's 2006 World Cup winning squad - Simone Perrotta.
The former Roma captain wants to dedicate himself to the club and his family.
"Our life has not changed apart from before he was in shorts, now in a jacket and tie," his former showgirl wife Ilary told Corriere della Sera.