The Vatican said sponsors will cover most of the cost, Agenzia Giornalistica Italica reported. The Roman Catholic Church will pay 21,800 euros ($28,500) with 90,000 euros ($117,600) from elsewhere.
The scene will include a reproduction of the old town area in the city of Matera, the famed "Sassi di Matera," Vatican Radio said. Joseph and Mary will guard their infant son in a cave like those where many residents of Matera still live.
Francesco Artese, a native of Matera who has become known for nativity scenes in Bethlehem and elsewhere, is in charge of the design.