MILAN (Reuters) - Telecom Italia's (>> Telecom Italia) Deputy Chairman Giuseppe Recchi has given up operational powers, two sources with knowledge of the matter said, in the latest sign of turmoil at the helm of Italy's biggest phone group.

The sources also said the group was set to file an extraordinary appeal to Italy's head of state against a so-called "golden power" decree giving the government special powers over companies of strategic national importance.

TIM has put forward proposals over how to implement the decree and is still waiting for answer. A source close to the company said the appeal was a "technical move" to keep options open for the company.

Recchi is set to stay on as board member, the sources said. Telecom Italia had no immediate comment.

Recchi has been TIM's chairman from 2014 until the middle of last year, when he was replaced by Arnaud de Puyfontaine, the chief executive of French media group Vivendi (>> Vivendi) which is TIM's single largest shareholder.

Since becoming the top investor, Vivendi has ousted two CEOs at Telecom Italia. Several sources have said there are tensions between Vivendi and TIM's latest CEO but the company this week denied a report suggesting he could be on the way out.

(Reporting by Paola Arosio, writing by Valentina Za, editing by Agnieszka Flak)

Stocks treated in this article : Vivendi, Iliad, Enel, Telecom Italia