Former driver Maurizio Flammini, who first had the idea in 1984, has now proposed the scheme again, city officials said.
"It's an idea Flammini has proposed and mayor Gianni Alemanno has said it is possible," a city council spokesman told Reuters.
Reuters said Flammini wanted to see a grand prix in Rome from 2011.
Formula One already has three street races in Valencia, Singapore and Monaco.
The Italian Grand Prix is currently hosted at the Monza circuit.
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