Merger talks between Lufthansa and ITA Airways are back on track after a last-minute deal was reached between the Italian government and the German 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

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.

The path for Lufthansa to take over the state-owned Italian airline ITA is clear, as the required documents for the buyout were submitted on time to the EU competition authority, Italy's finance ministry said on Monday.

Rome and Lufthansa had been locked into over a year of tough negotiations on the price and terms of the deal. Italy has reached a deal with German flag carrier Lufthansa on the sale of a stake in ITA Airways,

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.