UPDATE 1-Italy's ruling League will never vote to block Alpine tunnel - Salvini

Italy's ruling League party will never vote in parliament to block construction of a multi-billion euro Alpine tunnel that coalition partner the 5 Star Movement fiercely opposes, Deputy Prime Minister Matteo Salvini said on Friday.

The dispute over the future of the high-speed rail link with France has raised the risk of a government collapse. "We will never vote in parliament to stop it," Salvini, who is also leader of the League, said in an interview with Radio 102.5. "The majority of Italians are in favour".

Luigi Di Maio, head of 5-Star which argues money would be better spent upgrading existing roads and bridges, has accused Salvini of threatening to bring down the government. Salvini added on Friday that he was happy with the achievements of the coalition but it was now facing a choice. The government contract signed with the 5-Star envisaged a revision of the tunnel project but not its blocking, he added.

The so-called TAV project (Treno Alta Velocita) is a joint venture between Italy and France to link the cities of Turin and Lyon with a 58 km (36 mile) tunnel through the Alps on which work has already begun. The European Union has pledged to fund up to 40 percent of costs, Italy up to 35 percent and France up to 25 percent.

In December, Italy agreed with France to freeze new contracts on the tunnel until a panel of experts complete a cost-benefit analysis. The project could lose up to 300 million euros ($336.21 million) of EU funds if tenders are not launched by the end of March, an EU official told Reuters. Prime Minister Giuseppe Conte, who is not a member of either party but is closer to the 5-Star, said the government will take a decision by today and that the coalition is not about to collapse over the issue.

($1 = 0.8923 euros) (Reporting by Giselda Vagnoni; Editing by Susan Fenton and Andrew Cawthorne)

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