In 1987, during a game against A.C. Milan at the San Siro, he was hit on the head by a firework thrown by a Milan supporter. He stopped breathing for a short time but was eventually resuscitated by paramedics.
After retiring as a player, Tancredi worked as a goalkeeping coach for Roma until 2004 before following coach Fabio Capello to Juventus F.C. and taking the same post. At the start of the 2006-2007 season Tancredi followed Capello to work as a goalkeeping coach at Real Madrid.
On 14 December 2007 he was formally appointed the Goalkeeping Coach of England in line with the appointment of new Manager, Fabio Capello.