Italy beat France 2-1 to clinch its first world champions title since 2000 after the world champions lost 3-2 to England.
The hosts had the better of the first half with goals from Gianluca Zambrotta and Gianluigi Buffon, but England failed to score in the second half.
World Rugby’s World Cup committee has confirmed that the final will be played at Twickenham in England, with England holding on for a spot in the final.
The Italians had won the first two World Cups, with the first in 2010, but this was the first time they have won three in a row.
Italy’s Giuseppe Fazio has won the Italian title four times, with four European Cups, a Confederations Cup, two World Club Championships and a World Cup Final.
Fazio had also won the World Cup with Italy in 1994 and 1995, but has been criticised for not delivering the same consistency.
Italy won the Champions League twice in a five-year period from 2004-10 and has not lost in the finals since 1998.