UPDATE 1-DAZN nears deal with Mediaset's Publitalia on advertising in Italy -sources

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MILAN, June 16 (Reuters) - DAZN is nearing a three-year deal to give Mediaset’s Publitalia the right to manage advertising on the app’s sport streaming service in Italy, three sources told Reuters.

In one of the largest deals for the sport streaming app in Europe, DAZN, which is owned by billionaire Len Blavatnik’s Access Industries, has secured the right to screen all Serie A matches in the Italian soccer league home market over the next three seasons for 2.52 billion euros ($3 billion).

Publitalia, a unit of top Italian commercial broadcaster Mediaset, would handle DAZN’s advertising business connected with Serie A, one of the sources said, adding that a deal could be announced as early as this week.

Some terms of the potential accord, which has not been finalised, are still under discussion, another source added.

Mediaset and DAZN declined to comment on Wednesday. ($1 = 0.8256 euros) (Reporting by Elvira Pollina; Editing by Jan Harvey and Alexander Smith)