The minister’s decision to resign came amid reports that the State Auditor was evaluating the case and considering opening an investigation into whether Ms Boccia had received any taxpayers’ money, despite having no official government role.
The case had evoked comparisons with past sex scandals in Italian politics, most notably the “bunga bunga” sex parties that Silvio Berlusconi, the former prime minister, hosted at his various residences, featuring escorts, models and aspiring weather girls.
Opposition MPs had been calling for the minister’s resignation all week, saying his position was no longer tenable.
Carolina Morace, an MEP with the Five Star Movement, said: “The case has made news around the world and Italy once again is being made a laughingstock.”
The saga had become “an indecorous circus”, said Matteo Renzi, a former prime minister and the leader of a small centrist party, Italia Viva.
In an apparent attempt to draw a line under the scandal, Ms Meloni immediately appointed a new culture minister, Alessandro Giuli, the head of the MAXXI contemporary arts museum in Rome.
The resignation of Mr Sangiuliano is unlikely to have much impact on the government, which is performing well in opinion polls and faces a fractured opposition.