It means a separate Government-controlled organisation will be set-up to distribute funds to the country's national governing bodies. 

This body, called "Sport e Salute" - or Sport and Health - will reduce CONI's role to only handling preparation for the Olympic Games, it is claimed.

It would allegedly see CONI's annual budget reduced from €400 million (£353 million/$453 million) to just €40 million (£35 million/$45 million).

The move has been met with widespread concern across Italian sport.

CONI President Giovanni Malagò has said the plan has the aim of "taking control of CONI rather than boosting sport".

He claimed the proposals showed "very strong political will to transform the most prestigious Olympic Committee in the world, turning it into the worst Olympic Committee in the world".

According to La Repubblica, "almost all Federations are worried" with a meeting now being planned for January.

"Political" appointments within sport are said to be feared amid suggestions the law is a campaign against Malagò himself.

Malagò had previously suggested he could resign as CONI President should the organisation's role be significantly reduced.

He claimed last month that "steps forward" had been made over the matter after a meeting with key Government officials, including Giancarlo Giorgetti, Italy's Undersecretary for Sport.

However, no consensus appears to have been reached.

It was reported in November that no changes to CONI's role are expected to come into force until 2020, but today's news comes at a key time for sport in Italy with the country in the race for the 2026 Winter Olympic and Paralympic Games.

A combined effort from Milan and Cortina D'Ampezo is battling against Swedish capital Stockholm but there are fears over political support surrounding both bids.