Italy's government could name a new chief for Alitalia next week to replace former chairman Maurizio Prato who resigned last month after the airline's sale to Air France-KLM collapsed, union sources said on Friday.

Prato's replacement will hold both the chairman and the chief executive titles at the state-controlled airline, which is close to bankruptcy and has been unable to find a buyer despite being on the block for more than a year.

Aristide Police was appointed interim chairman after Prato's departure. Italian newspapers have speculated the chief executive post would be taken by businessman Mario Resca, who helped oversee food group Cirio after its collapse.

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