Priebke was sentenced to life in prison in 1998 for his part in the 1944 killing of 335 men and boys, including 75 Jews, at the Ardeatine Caves outside of Rome, Italy's ANSA news agency reported.
The killings were ordered by German dictator Adolf Hitler as revenge for the killing of 33 SS policemen in Rome.
The war criminal, who was extradited to Italy in 1995 after being discovered in Argentina where he was working as a school teacher, had been serving his sentence at home since 2003 due to health reasons.
Priebke recently caused outrage in Italy after it was discovered that was regularly allowed to leave his home to go shopping.
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