The announcement comes after the United Nations culture organisation UNESCO threatened to put Italy on a blacklist for not banning the huge vessels from the World Heritage site.
The government said on Tuesday that vessels weighing more than 25,000 tonnes would be barred from the lagoon from August 1.
Franceschini said the ships would be made to dock at the industrial port of Marghera instead.
Cruise companies will have to scrap Venice from their itineraries until the industrial port of Marghera is repurposed for passenger use.
The government has appointed a commissioner to fast-track the job, which would normally take about six months.
Workers and companies affected financially by the changes will be compensated, according to a government statement.
“The decree adopted today constitutes an important step for the protection of the Venetian lagoon,” the statement said.
Franceschini said it was a “historic day” for the city, which has long debated the presence of cruise ships.
Over the last 10 years, Venice has been caught up in a clash between those representing the economic interests of cruise traffic — which employs thousands of people in the area — and others who want to protect a delicate ecosystem from gigantic boats that churn up the waters and contribute to mass tourism.
