BRUSSELS - EU antitrust regulators will investigate whether Italy's decision to grant 900 million euros ($1.1 billion) in aid to troubled airline Alitalia CAITLA.UL breached the bloc's state aid rules.

Alitalia, in which Etihad Airways holds a 49 percent stake, was placed under extraordinary administration in May 2017. Italian authorities gave a total of 900 million euros to the carrier to ensure its financing during this period while also opening a tender aimed at finding a buyer for its assets.

The European Commission can order Italy to recover the money if it finds that the aid is illegal.

($1 = 0.8177 euros)

(Reporting by Foo Yun Chee; editing by Robert-Jan Bartunek) ((foo.yunchee@thomsonreuters.com; +32 2 287 6844; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))