He had called the accusations against him "completely unfounded".


Prosecutors may appeal the decision.


Retrial law


"Berlusconi was very emotional," Gaetano Pecorella, one of his lawyers, said after the court ruling.


"It's a great result. After 11 years of effort Berlusconi has been recognised as completely innocent of all charges," his other lawyer in the case, Nicolo Ghedini, said.

Berlusconi, owner of broadcaster Mediaset, was first acquitted in 2004.


A law introduced by his government meant he could not be retried but it was ruled unconstitutional earlier this year, giving prosecutors a green light to appeal.


In the trail, he was also accused of paying David Mills, a British lawyer, $600,000 kickback in 2000 for withholding incriminating details about him.


Berlusconi and Mills, the estranged husband of the British culture minister, Tessa Jowell, have both denied any wrongdoing.