Sicily's governor Renato Schifani told a regional assembly meeting the government would approve the measure later in the day, in comments confirmed by his spokesman to Reuters.
A European Union embargo on Russian crude takes effect on Dec. 5 and it risks blocking supplies to Lukoil's ISAB refinery.
The refinery has relied solely on Russian oil since banks stopped financing it and providing the guarantees needed to buy oil from elsewhere following Moscow's invasion of Ukraine begun in February.
On Wednesday, Industry Minister Adolfo Urso said the options available to the plant were to secure financing from banks through a state guarantee or direct state support, while talks to sell the refinery drag on.
The Financial Times reported on Thursday that sale talks had resumed with U.S. investment platform Crossbridge Energy Partners, which would value the plant between 1 billion and 1.5 billion euros ($1.57 billion).
Crossbridge Energy Partners declined to comment.
Schifani said the trusteeship was "an important solution" that would still allow for an eventual sale of the plant that accounts for a fifth of Italy's refining capacity and employs about 1,000 workers in an economically disadvantaged area.
"In the absence of possible buyers, nationalisation cannot be ruled out, as it happened in Germany," Schifani said, referring to Berlin taking control of a refinery owned by Russian oil firm Rosneft in September.
The government had no immediate comment on Schifani's remarks.
A source close to the matter who declined to be named told Reuters that the government was working on unlocking financing for ISAB.
Lukoil is affected by international sanctions in the United States, though not in Europe, and banks are seeking reassurance that they would not risk fines if they have dealings with it.
($1 = 0.9574 euros)
(Reporting by Angelo Amante, additional reporting by Francesca Landini and Giuseppe Fonte, editing by Alvise Armellini and Barbara Lewis)
By Angelo Amante
