Paolo Gentiloni named as Italy's new PM

Paolo Gentiloni was yesterday named as Italy's new prime minister following reformist leader Matteo Renzi's resignation in the wake of a crushing referendum defeat.

Gentiloni, who served as foreign minister under Renzi, was asked by President Sergio Mattarella to form a new centre-left government that will guide Italy to elections due by February 2018.

A close ally of the outgoing premier, Gentiloni now has to put together his own government team ahead of a parliamentary approval vote expected on Wednesday.

In a brief statement, Gentiloni said there was an "urgent need for a fully functioning government" to address a series of pressing international, economic and social issues.

Chief among those is a looming crisis in the troubled banking sector and ongoing relief efforts after a series of deadly earthquakes between August and October.

Mattarella turned to Gentiloni after opposition parties rebuffed overtures about a possible national unity government. The president rejected opposition demands for an immediate election.

Renzi, who had been in power for two years and 10 months, resigned last week after voters overwhelmingly rejected a package of constitutional reforms on which he had staked his future.