"On the... key question whether Italy has lifted its objections, the answer is still 'no'. But we hope that is possible very, very soon," Dijsselbloem, the Dutch finance minister, told a news conference.

Dijsselbloem declined to say what Italy's objections were but said the funds were needed urgently and added that finance ministers had also discussed a need to channel more funds to help refugees in Turkey, a view also shared by Germany.

EU leaders agreed to the aid grant as part of a package of measures aimed at reducing the numbers of refugees leaving Turkey and heading for Europe.

Earlier on Friday, European Commission President Jean-Claude Juncker also said the funds were urgent but noted that the EU executive had existing funds that it could deploy for initial projects.

($1 = 0.9168 euros)

(Reporting by Alastair Macdonald and Francesco Guarascio; Writing by Gabriela Baczynska; Editing by Alastair Macdonald)