Italy's co-ruling 5-Star Movement has resolved a long-running internal legal battle, paving the way for former Prime Minister Giuseppe Conte to take over as leader of the divided party and try to revive its fortunes.

Conte agreed to take the reins of 5-Star after his coalition government collapsed in February, but his plans to relaunch the struggling group have been delayed by a bitter dispute with the firm that provided its internet platform.

The company, called the Rousseau Association, said many 5-Star parliamentarians had refused to honour a commitment to pay part of their salaries towards the platform's upkeep.

In response, it refused to hand over the identities of the party's members, making it impossible for Conte to be formally voted in as leader and leaving the movement politically paralysed.