The government has postponed approval of a decree to sell a stake in Poste Italiane, following resistance from government and opposition parties to loosening the state's grip on key public services.

Sources familiar with the matter told Reuters.

As part of plans to sell state assets to contain the huge public debt, the government in January had approved a decree allowing the Treasury to sell all or part of its 29.3 percent stake in Poste, while still retaining control through another 35 percent stake held by Cassa Depositi e Prestiti (Cdp).

However, after widespread criticism of the sale of part of a strategic company, the Treasury told union representatives in May that it would revise the decree to divest a smaller 13 percent stake, keeping 51 percent in public hands.

Approval of the revised decree is not on the government's agenda, three sources said, but without providing further details.

Treasury representatives told unions in May that the final decree was initially scheduled to be adopted in June.

Rome would raise about 2 billion euros from the sale of about 13 percent of Poste, which is worth 16 billion euros.

Criticism raised claims that the debt interest savings from the sale would be less than the dividends paid by Poste over a long-term horizon.

The group -- which employs more than 120,000 workers in Italy -- plans to distribute 6.5 billion euros in dividends between 2024 and 2028, compared with 3.8 billion euros distributed in the previous five years.

Italy raised more than 3 billion euros in 2015 with the sale of 35 percent of Poste in an IPO that valued the group at 8.8 billion euros.

Rome had considered a further stake sale in 2016 under the government of Prime Minister Matteo Renzi, but decided not to pursue it over fears that a higher private-sector stake in Poste's capital would fuel pressure on the group to increase profitability and reduce its post office network.

One of the sources said the government is focused on plans to further reduce the stake it owns, currently about 27 percent, in Banca Monte dei Paschi di Sienaand re-privatize it, after an initial attempt failed in 2021.

People familiar with the privatization process had previously said the Treasury must relinquish control of Mps by the end of this year to meet deadlines agreed with the European Union at the time of the bailout in 2017.

(Translated by Chiara Scarciglia, editing Andrea Mandalà)