“It is very likely that in the end I’ll agree to run,” he said at a literary event in Rome.
Berlusconi has served as prime minister three times since claiming his first election victory in 1994.
After dominating Italy’s political sphere for almost two decades, Berlusconi was forced out of parliament in 2013 following a tax fraud conviction.
Despite losing his power in parliament, he remained at the helm of his centre-right Forza Italia (FI) party.
Following his announcement on Thursday, Berlusconi urged the head of Italy’s anti-immigration League party, Matteo Salvini, to end his alliance with the anti-establishment Five Star Movement (M5S) and join forces with FI again.
Berlusconi was last ousted from power in November 2011, following a parliamentary revolt against him and his scandalous lifestyle.
He is set to go on trial next year for allegedly paying a witness to give false testimony about his notorious “bunga bunga” parties.
The case dates back to 2008-09 when the billionaire hosted escort girls at the soirees.
The European Parliament election will be held in May, when traditional parties face major challenges from rising far-right and eurosceptic populist forces.
