* Media crossholding restrictions extended by three months
* Extension is less than first expected, may be prolonged
(Adds background, details)
ROME, Dec 30 (Reuters) - The Italian government extended a ban on cross-holdings of television and print media assets by three months, less than originally expected, but may prolong the ban until the end of next year.
According to an annual decree extending the life of various government measures, published in the official gazette late on Wednesday, restrictions set to expire at the end of the year will now run until March 31, 2011.
That contrasts with preliminary drafts circulated after a cabinet meeting on Dec. 22 to approve the decree, which indicated the ban would be extended until the end of 2012.
According to the text in the official gazette, the government may further extend the ban until the end of 2011.
The issue is highly sensitive in Italy given Prime Minister Silvio Berlusconi's control of dominant private broadcaster Mediaset and the government's sway over public sector broadcaster RAI.
Restrictions of media cross-holdings were laid down in the so-called "Gasparri law" regulating broadcast media, which was passed in 2004 following longstanding criticism of the concentration of media interests in Italy. (Reporting by Giuseppe Fonte; Writing by James Mackenzie; Editing by David Holmes)