Italian Prime Minister Silvio Berlusconi has reached a divorce settlement by which his second wife will receive 300000 euros (R2.8-million) a month, less than a 10th of the amount she sought, press reports said yesterday.

Veronica Lario, 20 years Berlusconi's junior, at 53, will also enjoy the use of a large villa outside Milan - where she already lives - in the deal to end the couple's 19-year marriage.

The former stage actress filed for divorce a year ago after revelations that the media tycoon, noted for his dalliances with other women, attended the 18th birthday party of an aspiring model who called him "Daddy".

Berlusconi's lawyers rejected as "exorbitant" the 3.5-million euros a month alimony she sought.

The details of the settlement come on the heels of Italy's first trade fair offering one-stop shopping for unhappy spouses.

The fair, fittingly held in Berlusconi's native Milan at the weekend, showcased divorce lawyers, seduction coaches, dating services for new singles and party ideas for those in the mood to celebrate a break-up.