Cannavaro has decided to hang up his boots precisely five years after lifting Italy's World Cup trophy in Berlin.
"Cannavaro is a great player, but above all a great man," Lippi told Sky Sport Italia.
"He had an extraordinary career that was topped off with the victory in the World Cup. I speak to Fabio often and we have been in contact recently.
"He is very satisfied with this experience in Dubai, but recently his knee problems flared up again.
"It could well be this is why he has decided to hang up his boots. Now we all have to stand by him."