Police in 16 towns and cities from the Mediterranean island of Sicily to the Alps in the north took part in the investigation, launched two years ago.
The probe revealed a quote "huge and varied array of residents, united by the same ideological fanaticism and willing to create an openly pro-Nazi, xenophobic and anti-Semitic movement," a police statement said.
The new party was called the Italian National Socialist Party of Workers.
The group had forged links with extremist groups abroad, with Portugal, Britain and France amongst them.
There are no details on how many people joined the group or how many arrests were made.
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