Reuters reported that the Italian government said on Monday Prime Minister Mr Mario Monti would meet the head of steel maker Ilva, to discuss its future after the company said it may be forced to close.

The announcement followed the arrest of several managers over an alleged cover up of harmful environmental damage and a court order to seize the factory's steel output, which the company said could force a shutdown.

The meeting on Thursday will bring together the environment, labour and health ministers with regional leaders and the head of the major unions, the government said in a statement.

The case is one of the most sensitive industrial issues facing Monti's technocrat government, involving some 20,000 jobs in an area already blighted by high unemployment.