Lombardy regional councillor, Luca Paladini, who is also the founder of the Sentinelli Minority Rights Association, announced the news on Wednesday.
Born in 1924 as Luciano Salani in Fossano, she lived in Bologna as a gay man in her youth.
She deserted the Fascist Italian army after the 1943 Armistice and was deported to the Dachau Nazi death camp in 1944.
She was imprisoned in a concentration camp for six months.
The day before the liberation, Salani was reportedly found by American troops among a pile of bodies with a wounded knee after a massacre of prisoners by a Nazi firing squad.
She had spells in Rome, Turin and Paris after World War II and underwent gender-transition surgery in the 1980s in London, before returning to Bologna.
ANSA