Italy's prime minister has unveiled his new cabinet - a coalition of two rival parties in an alliance aimed at shutting out right-wing leader Matteo Salvini.

Giuseppe Conte's new government is expected to improve ties with the European Union and adopt a softer stance on immigration.

The team of ministers, drawn primarily from the anti-establishment Five Star Movement and the left-leaning Democrat Party, will be sworn into office on Thursday morning by President Sergio Mattarella.

Image: The new coalition has shut out right-wing leader Matteo Salvini

Mr Conte told reporters that he and the new ministers will "dedicate of best energies, our abilities, our passion to making Italy better in the interest of all Italians".

The previous administration, which was also led by Mr Conte, collapsed last month when Mr Salvini's far-right League Party pulled out of the coalition with the Five Star Movement in an attempt to force early elections.


But after days of haggling, the Democratic Party and the Five Star Movement - who have long been bitter rivals - worked out a deal to team up in a government headed by Mr Conte.

Mr Conte, who was a novice to politics with a career as a law professor and mediation specialist before heading his first government last summer, considers himself non-partisan, though acknowledges sympathising with the Five Star Movement.

The president reminded journalists that Mr Conte still faces one crucial hurdle as the coalition must win mandatory confidence votes in the legislature's two chambers.

As of yet, no date has been set for Mr Conte to address parliament in a pitch for support.

Democrat Roberto Gualtieri, who heads the European Parliament's commission on economy and finance, has been appointed economy minister.

He is tasked with steering delicate manoeuvres by the government to drastically pare down a deficit that worsened with the populists' social welfare programmes in Mr Conte's first government.

Mr Salvini will lose his position as interior minister - a post he exploited to boost popularity among his voter base by leading a crackdown on humanitarian ships rescuing migrants at sea.

His League Party denies this and blames migrants for crime.

Luciana Lamorgese, who is currently an interior ministry official in Milan, will replace him. She is considered an immigration expert as well as non-partisan.

Five Star Movement leader Luigi Di Maio will be appointed foreign minister.

Democratic Party leader Nicola Zingaretti, who is governor of the Lazio region including Rome, declined to have any ministry post so he can concentrate on strengthening his long-fractious party.