Costa Cruises has chosen a consortium including oil service company Saipem to scrap the hulk of the Costa Concordia cruise liner which capsized off the Tuscany coast in 2012, sources familiar with the matter said on Friday.
The green light from the Italian government is still missing, the sources added.
Besides Saipem the consortium includes Genoa-based companies Mariotti and San Giorgio, one of the sources said.
Costa Cruises, a unit of Carnival Corp, and Saipem declined to comment.
The luxury liner hit rocks more than two years ago as it sailed close to the island of Giglio, killing 32 people.
Since then, it has been hauled upright but still rests where it capsized off the coast of the holiday island.
Reporting by Antonella Cinelli and Stephen Jewkes