Deutsche Lufthansa AG is on track to complete its takeover of ITA Airways after ironing out differences with the Italian government over the purchase of the unprofitable carrier.

The Italian government and Lufthansa reached a deal on the sale of a stake in flag carrier ITA Airways to the German airline, Rome announced Monday evening, hours before a midnight deadline to present the agreement to European regulators.

Lufthansa Group submitted a package of remedies to the European Commission needed to secure antitrust EU approval to take a minority stake in ITA Airways, the German airline said on Tuesday, bringing it a step closer to closing the deal after a dispute with Italy's Treasury last week put it on hold.

German airline Lufthansa's $356m investment in Italian state-owned airline Alitalia is close to being finalized after the airline resolved its differences with the Italian government, reported Bloomberg.

The Italian Ministry of Economy and Finance has revealed that it has reached a deal with Germany's Lufthansa Group for a 49% stake in ITA Airways. View on euronews

Italy's Treasury said late on Monday it sent to the European Commission the package of remedies needed to secure EU antitrust approval for the tie-up between ITA Airways and Germany's Lufthansa. The German carrier is looking to acquire a 41% stake in state-owned ITA but the deal was put on hold last week due to a dispute between the Treasury and Lufthansa over the agreed price.