Giuliana Sgrena, who works for the left-wing Il Manifesto newspaper, might be back in Rome later Friday, said Italy's Undersecretary for Foreign Affairs Margherita Boniver.
The release "is confirmed 100 percent," Boniver told Sky TG24 television news.
Foreign Minister Gianfranco Fini expressed "great joy and enormous satisfaction," the ANSA news agency said. The Al-Jazeera television network first reported the journalist's release.
Sgrena, 56, was abducted in Baghdad on Feb. 4. Last month, she was shown in a video pleading for her life and demanding that all foreign troops — including Italian forces — leave Iraq.
In other recent developments:
Two suicide car bombs exploded outside the Interior Ministry on Thursday in eastern Baghdad, killing at least five policemen and wounding nine, the defense ministry reported.
Another car bomb targeted a police convoy in Baqouba, 35 miles northeast of the capital, and killed one Iraqi policeman and a civilian, the U.S. military said. Six officers and 10 civilians were injured.
Meanwhile, interim Prime Minister Ayad Allawi, whose party finished third, denied rumors he had given up his effort to stitch together support from other groups, including the Kurds, that would allow him to remain prime minister.
The emergency decree includes a nighttime curfew and gives the government extra powers to make arrests without warrants and launch police and military operations when it deems necessary.