The ban for Italy will begin at 6:00 pm on Wednesday, March 11.
Bans are already in place for travellers from China, Iran and South Korea.
Foreign nationals who have been in Italy, mainland China, Iran and South Korea will not be allowed into Australia for 14 days from the time they left those countries.
Australian citizens and permanent residents travelling from those countries will be able to enter Australia, but need to self-quarantine for two weeks.
Australia last week added extra screening for passengers from Italy but chose not to impose a travel ban.
However, the situation in Italy has since worsened, with the total death toll now standing at 631, while 10,149 people have been infected in just over two weeks.
With the rapid spread of the coronavirus, the Italian government on Tuesday morning implemented nationwide quarantine measures to contain the virus.
These included a ban on public gatherings, the suspension of all sporting events, the closure of cinemas and tourist attractions, and strict travel restrictions until April 3.
Italy’s outbreak is now the most widespread outside mainland China.