Italy appeals court orders retrial for Berlusconi ally

Italy's highest appeals court on Friday annulled a seven year prison sentence for mafia links handed to one of former prime minister Silvio Berlusconi's closest allies, and ordered a retrial.

Marcello Dell'Utri, a senator for Berlusconi's centre-right People of Freedom party and founder of its forerunner Forza Italia, was convicted in 2004 of acting as a link between the mob and Italy's business and political elite - a charge he denied.

A long-time friend of Berlusconi and former chairman of his advertising firm Publitalia, Dell'Utri was accused by Sicilian prosecutors of having frequent contact with the mafia while working for Berlusconi between 1974 and 1994.

Palermo's appeals court upheld the conviction in 2010, but reduced his jail sentence to seven years from nine. He went on to launch a fresh appeal in the Court of Cassation which ruled on Friday.

Dell'Utri has yet to serve any jail time, pending his appeals.

He will face a retrial in Palermo in front of different judges.