I think Italian Greyhounds are very energetic high maintanence dogs, but I’ll have to look that up. He may need more room and activity and this might be messing with him a bit.

@Adirondackwannabe How did you know what kind of dog OP is talking about?

@chyna it says so in the last line.

Why are you using the potty pads at all? Rather than letting him potty anywhere in the house, including on the pad, just take him outside at regular intervals. Crating should be sufficient in a short period of time if you are diligent. Put the dog in the crate, and take him out immediately after letting him out. If he goes, then let him go freely in the house for a while, if not, put him back in the crate for a short term until he does his business outside. Do this often, and on a schedule. Why do you want the dog to learn to go indoors before going outdoors?

Italian greyhounds are very bright and very sensitive. You need consistency and calmness, You need to remove all indoor odor from where he has peed.

Then carefully switch him to outdoor training. Use the methods described here.

Be sure to be consistent in the times you take him and in the phrases that you use.

Be patient.

Oh, I worded that badly above. Take the dog outside immediately after letting him out of the crate, I meant.

Take him to where you want him to poop; the exact spot.
Light a wooden match. Let it burn for a few seconds, then blow it out. Immediately put the burnt side against his rectum. The matchstick will still be hot, and he will poop immediately. Let him smell the poop, and he will poop there from then on.
Some people feel this is insensitive, or abusive. This technique was taught to my sister by a dog trainer.

When we first got him we kept him in an exercise pen with a bed and a potty pad. When inside the pen he would consistantly pee on the potty pad but would usually poop right next to the pad.

This ^^^ was your first mistake. A dog should never be in an exercise pen to sleep in. Dogs should not poop/pee where they bed down.

The dog should be in a crate just big enough to lay down in. Dog should be taken out from the crate to where you want him to pee, immediately upon rising and be rewarded with sing-songy praise and a treat.

You need to start from the beginning with praise & treats. I agree with @marinelife‘s advice/link above. You need to thoroughly rid your home of any potty odors before potty training. Otherwise, you’ll get no where.

Skip the potty pads and follow the recommendations for crate training. Be consistent. And by the way, Iggies are notorious for being difficult to housetrain.

What on earth is meant by crate? I’ve never heard any references to dog crates down here at the bottom of the world.

@Adagio You lock your dog in a small cage. I have never done it in my life. If I can’t teach them without a cage I’m a huge loser.

@Adirondackwannabe thank you for the definition, I don’t think I’d like to be a dog locked in a small cage, sounds awful

I wanted an italian greyhound so badly but when reading about them found that they are the hardest of dogs to potty train. I hope it goes well.

Keeping a puppy in a crate is akin to keeping a child in a playpen. It is what you do to keep them safe when you cannot be watching them. It isn’t cruel, most look upon their crate as their home and will go in of their own accord. It is an excellent housebreaking method. Did you notice the OP said they are on the verge of getting rid of the dog? Much better to be crate trained than given up! What wasn’t mentioned was to make a huge fuss over the dog when it does it right and I believe in at least a verbal correction when it has an accident but many will argue that so make your own decision.