Italy was ready to allow its jets to take "targeted military action", he said in a statement.

Earlier, a Nato air strike badly damaged buildings in Libyan leader Col Muammar Gaddafi's compound in Tripoli.

Nato is enforcing a UN resolution to protect civilians in Libya amid a revolt that began in February, inspired by other uprisings in the Arab world.

Mr Berlusconi announced the decision after a telephone call with US President Barack Obama, and would also call other European leaders to brief them personally, said his statement.

Italy had previously said it would not take part in Nato-led air strikes, citing its 40-year colonial rule of Libya.