The sum, announced on Thursday, also closes other disputes dating between 2002 and 2015.
"We have also begun the process of drawing up an agreement that will ensure Google pays the correct taxes in Italy in the future", the tax agency said in a statement.
Italy has done a search for money and come up with 306 million euros from Google.
Italian tax police alleged a year ago that Google had not paid about 1 billion euros of Italian revenue between 2009 and 2013.
Google and other global giants such as Apple (AAPL, Tech30) and Starbucks (SBUX) have been accused of transferring profits from their sales across national borders to avoid paying high corporate tax rates.
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Google confirmed it had reached an agreement with the authorities without commenting on whether it accepted the revenue's calculations.
Google said it remained committed to Italy.
Last year Google also agreed to pay the Treasury £130m for around ten years of underpaid taxes in the United Kingdom, in a deal announced by the then-Chancellor George Osborne which was widely criticised as being too lenient. "We need firmer worldwide rules governing digital companies and better dialogue between countries where they operate".
"In addition to the corporation tax already paid in Italy for these years, Google will pay an additional 306 million euros". In September, the European Commission ordered Apple to pay record $14.5 billion in tax arrears to Ireland, but Dublin, which benefits from hosting a number of multinationals due to it lax tax regime, has appealed the ruling.
USA multinationals now hold an estimated $2.6 trillion overseas, most of it from tech companies' global operations, and a reduction in the tax rate could inspire them to return a sizable amount of cash to the United States.