The agreement is expected to put an end to a several disputes, which include a criminal probe that saw police accuse Google of booking around its revenues from Italy in Ireland between 2009 and 2013.
The amount covers the period between 2002 and 2015 and refers to Google Italy and Google Ireland, Google and Italy's tax agency said.
On Thursday, Google confirmed that it would pay the back taxes to Italy, on top of what it already paid during 13 years of operations through 2015.
The Italian settlement brings into sharp focus again, the amount of corporation tax paid by Google in Ireland where its Europe, Middle East and Africa HQ is registered and based. "Google confirms its commitment to Italy and will continue to work to help grow the online ecosystem of the country".More news: One dead, one in custody after stabbing at UT
The deal will also pave the way for more agreements that Google pays taxes on future income it produces in Italy.
Google did not immediately respond to a request for comment.
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.
According to the French government, Google owes $ 1.8 billion to unpaid taxes. France's finance minister Michel Sapin said previous year that he won't negotiate a deal with Google, but will instead pursue legal action. In late 2015, Apple Inc. agreed to pay about EUR318 million to end a dispute in which the company allegedly failed to pay nearly EUR900 million in taxes between 2008 and 2013.