Adds details in paragraph 4-5; 7-13

By Elvira Pollina

MILAN, Nov 14 (Reuters) - Telecom Italia (TIM) TLIT.MI will be better able to assess whether it can resume dividend payments in February, when it updates its strategy following the sale of its fixed-line network, the head of Italy's biggest telecoms group said.

"With the presentation of the plan 2025-2027," Pietro Labriola told analysts during a post-results call on Thursday.

"We will have much more room to give details about a possible return to the remuneration of the different (categories of) shareholders."

Labriola also suggested TIM could lift next year's targets, saying in the new business plan there could also be "room to improve in different areas".

Milan-listed TIM shares extended gains after Labriola's remarks to rise by around 6% by 1240 GMT. The stock is down nearly 21% from the beginning of this year.

TIM said it remains on track to meet its earnings and debt targets following the sale of its fixed-line access network as it reported a 7.6% rise in core profit in the third quarter.

The former phone monopoly finalised in July the sale of its landline grid to KKR KKR.N for 18.8 billion euros, a deal aimed at drastically cut its debt pile.

Since 2021, the company, whose earnings and finances have been under pressure for years, has suspended any payments to shareholders, including those holding savings shares, which command a minimum dividend.

TIM CEO said that proceeds from extraordinary operations, including a number of disposals currently under way, could speed up the decision to return to rewarding investors.

He also cited proceeds stemming from an ongoing lawsuit with the Italian government, which earlier this year was ordered by a court to pay TIM 1 billion euros.

Labriola also said that talks with a Treasury-led consortium to sell its submarine cable business Sparkle were progressing.

Finally, he expressed confidence that a merger between its spun-off network business FiberCop and rival Open Fiber could take place "sooner rather than later."

The long-awaited deal would allow TIM to pocket an earnout payment of 2.5 billion euros from KKR.

(Reporting by Elvira Pollina; Editing by Gianluca Semeraro and Valentina Za)

((elvira.pollina@thomsonreuters.com;))