Odds plummeted after a leaked document revealed Italy’s nationalist Lega and Five Star Movement coalition plot to ditch the euro.
Online betting firm Betway is now offering odds of 6/4 from 9/4 following a shock manifesto claiming the two populist nationalist parties pledge to leave the euro and ask the European Central Bank write off the country’s €250bn (£220bn) debt.
Betway’s Alan Alger said: “The draft plans from Five Star and The League will have put Brussels on red alert.
“Italy were already fancied to be the next country to exit the EU at 9/4 and recent coalition talks have only extended their lead at the front of the queue to 6/4.”
The shocking report, which outlines demands for the EU to write off Italian debt amounting to €250 billion (£220 billion), comes as Lega leader Matteo Salvini said Italians will no longer be “slaves” to the EU.
At the start of May, Mr Salvini and Five Star Movement leader Luigi Di Maio announced that talks between the two Eurosceptic parties have been successful.
Following the news, a leaked manifesto outlining Mr Salvini and Mr Di Maio’s plans for forming a government threaten to spark fears of renewed challenges to the EU after Brexit.
The joint document states the “system of European economic governance – so-called Stability and Growth Pact – based on the dominance of the market and the respect of the stringent economic and social constraints must be re-thought with other European partners.
“And the report demands a review of monetary policy and calls for a return to the pre-Maastricht approach in which EU members were motivated by a genuine intent of “peace, brotherhood cooperation and solidarity”.
The parties issued a joint statement on Wednesday and said the document was an old draft that contained many proposals that have since been amended.
Conservative MP Daniel Kawczynski insisted an Italian Eurosceptic Government could lead to a so-called Italexit and other Eurosceptic EU countries could also end up leaving the bloc.
Speaking to Express.co.uk, Mr Kawczynski warned: “This is the beginning of the end of the EU as we know it.
“This is a failed organisation which has particularly failed on the immigration crisis in Syria, Eurozone crisis in Greece and youth unemployment in Spain.
“It is a bureaucratic, unelected, outdated organisation.”