"We are convinced that a two-state solution remains the most just and sustainable one, even if it still requires a long and complex journey to restore confidence between the two sides and their reciprocal willingness to dialogue and to compromise," said a Foreign Ministry statement.
Referring to Trump's blueprint to end one of the world's longest running conflicts, the statement said Italy "welcomes US efforts" to re-start the stalled Middle East peace process.
Italy will "examine the contents of Washington's proposals very closely, together with the European Union and with regard to relevant United Nations resolutions," the statement said.
Trump's plan, which has enraged the Palestin, envisages a Palestinian state and the recognition of Israeli sovereignty over West Bank settlements. It retains Jerusalem as Israel's "undivided" capital and includes "areas of East Jerusalem" in the Palestinian capital.
"Italy is willing to back a negotiating process which, taking into account the legitimate aspirations of both sides, contributes to the stability and security of the Middle East region," the statement said.
While Israeli Prime Minister Benjamin Netanyahu hailed Trump's plan as "the deal of the century", the UN has said it remains committed to a two-state solution based on the boundaries in place before the 1967 war, when Israel seized the West Bank and Gaza.
( With inputs from IANS )