Italian journalist and literary critic Marino Sinibaldi led the jury that selected the town, which is located near Turin in the Piedmont region.
The culture ministry launched the initiative in 2019, with the aim of encouraging Italian cities to execute projects that promote reading and literacy.
Ivrea will be handed the title by the Calabrian town of Vibo Valentina, which was last year’s Italian Book Capital.
The town will receive €500,000 to fund the realisation of its winning project presented in the competition.
Ivrea beat Aliano, Barletta, Costa di Rovigo, Nola, Pistoia, Pescara and Pordenone with is project, which is based on Adriano Olivetti’s notion of “community”.
Ivrea Mayor Stefano Sertoli said the announcement represented “a great opportunity for the town”.
“We will focus on the themes of reading and culture,” he added.