The Turin Games will be held in February 2006

Valentino Castellani, head of the organising committee, had been set to leave after his government appointed a Games "supervisor".

But after a meeting with IOC president Jacque Rogge and Italian prime minister Silvio Berlusconi, Castellani said that the dispute had been resolved.

He said: "There is now an equal distribution of duties and powers."

His announcement followed two weeks of rows and a bitter power struggle in which the organising committee, the Italian government and the International Olympic Committee (IOC) were all involved.

Castellani originally announced his resignation on 4 November after the Italian government decided to "delegate the responsibility of organizing the Turin 2006 Olympic Games to Undersecretary Mario Pescante".

Rogge had endorsed the appointment of Pescante, who is a former head of the Italian Olympic Committee.

But Castellani claimed that Pescante's role came into direct conflict with his own mandate.