Mr Obama called Mr Berlusconi and the two men confirmed the 'close ties of friendship and cooperation between the two countries (during) a long, cordial chat,' the prime minister's office said in a statement.

The pair focused on Italy's presidency of the Group of Eight (G8) industrialised nations starting in January, the statement said.

The gaffe-prone Berlusconi sparked controversy on Thursday when he described the African-American president-elect as 'young, handsome and even tanned' and warned that many awaited him practically as a 'messiah'. The comments drew a chorus of criticism at home and abroad, but especially from the left-wing opposition in Italy, whom Mr Berlusconi dismissed as 'imbeciles' before using a vulgar slang term used to convey the same idea.

Mr Berlusconi bristled when asked at a news conference at a summit in Brussels why he did not apologise for the remarks, telling the journalist: 'You, too, you put yourself on the list of those I spoke of yesterday (imbeciles). ... It is you who should be apologising to Italy.' The Italian leader then swept out of the room.

'It's disconcerting that (Mr Berlusconi) didn't realise the world impact of his umpteenth gaffe,' the deputy secretary of the opposition Democratic Party said on Friday.

'Imagine (French President Nicolas) Sarkozy calling (opposition figure) Segolene Royal 'coglione',' Mr Dario Franceschini told the ANSA news agency of the term, which literally refers to testicles.

A New York Times blog, The Caucus, was inundated by more than 1,000 comments, the vast majority from Italians embarrassed over the remark.

'I apologise to our American friends. Today I am ashamed to be Italian,' was one typical comment.

A handful defended the Italian leader. 'It's just a joke and we need to smile. Bravo Berlusconi!' said one.

The flamboyant self-made billionaire, who is himself permatanned, is known the world over for politically incorrect comments and gaffes.

An editorialist in the Italian daily La Stampa on Friday mused that 'If Berlusconi wanted to stand out among the thousands of congratulatory messages that Obama has received (since winning election on Tuesday), he succeeded in his way.'

Mr Berlusconi said he expected to 'work very well' with Mr Obama, starting when the two meet on the sidelines of a November 15 Group of 20 meeting in Washington.

Mr Obama takes office on January 20. -- AFP