The €1.5 billion package will help get an estimated 200,000 young Italians into work.
Letta said the deal was a "major achievement for Italy and the European Union," according to a report in La Stampa. "We have won on youth issues and fairness from the European Investment Bank (EIB)," he added. Letta emphasised the commitment of the Italian government towards fighting youth unemployment.
Most of the money will be spent in the poverty-stricken south of the country, but will also ease the employment of people on temporary contracts throughout Italy while boosting training, internship and school-leaver schemes.
The measures will include fiscal incentives for companies that take on people under the age of 30.
EU leaders agreed to pay out €6 billion overall to tackling youth unemployment across Europe, which affects more than half of Greece and Spain's young population and more than 40 percent in Italy.