MILANO (Reuters) - The Italian government said it would appeal to the Supreme Court against a ruling on Wednesday that ordered it to return about 1 billion euros ($1.08 billion) to Telecom Italia (TIM).

A Rome appeals court ruled in favour of the telecoms company, which was seeking to recover a licence fee it was required to pay to the state in 1998, the year after the telecoms sector was deregulated.

The prime minister's office said in a statement it would ask that the ruling be suspended until its appeal is heard.

($1 = 0.9236 euros)

(Reporting by Claudia Cristoferi, editing by Gavin Jones)