ROME- Projections based on early results suggest that Premier Silvio Berlusconi has lost local elections in his stronghold Milan and in Naples.

If confirmed, the defeat would deal a heavy blow to the Italian leader, already hit by a sex scandal and besieged by unhappy political allies.

Monday's projections by state-run TV RAI -- based on 50 per cent of the sample, with a margin of error of plus or minus 4 percentage points -- said Berlusconi's candidate, Milan Mayor Letizia Moratti, was at 45 per cent compared to 55 per cent for her centre-left opponent, Giuliano Pisapia.

In the Naples run-off, Berlusconi's candidate was trailing 64 per cent to 36 per cent.