Italian media had accused Kanayo Nwanze, president of the International Fund for Agricultural Development (IFAD), of spending up to 300,000 euros (404,000 dollars) a year on a sprawling villa in Rome's wealthy Via Appia Antica area.

"The president has asked IFAD to cancel his contract on the house and has found a new residence," Cassandra Waldon told AFP, adding that Nwanze hoped to move out of the villa before the end of the year once the terms were finalised.

IFAD said the media reports contained "inaccuracies" and were "misleading".

Waldon declined to reveal the cost of renting the villa complex -- which boasts its own swimming pool, football pitch and ancient Roman ruins -- but said the new accommodation was likely to cost 13,000 euros a month or less.

She said Nwanze "recognises his accommodation has given rise to some perceptions not in line with the IFAD mandate," adding that the UN organisation has reacted by moving to reduce his expenses by close to 20 percent.

Rome-based website Italian Insider last month quoted anonymous IFAD sources who accused Nwanze of "blowing millions" on "princely personal expenses."