Italian news agency ANSA said Giuseppina Robucci died on Tuesday in her birthplace of Poggio Imperiale, Apulia.
For years, Robucci managed a cafe with her husband in the small town, and had five children, nine grandchildren and 16 great-grandchildren.
Known locally as “Nonna Peppa”, she had been named “honorary mayor” in 2012.
“We are sad, but at the same time honoured that we had her as a citizen,” Alfonso D’Aloiso, mayor of Poggio Imperial, said.
Born on March 20, 1903, Robucci lived 116 years and 90 days.
The Gerontology Research Group said Robucci was the last European born in 1903.
She was just two months younger than the current oldest living person, Kane Tanaka of Japan, who was born on January 2, 1903.
Robucci is 17th on the list of people in the world who have lived the longest lives.
In previous interviews, Robucci credited her long life to her continuous faith in God, eating healthily and avoiding alcohol.