An Italian court has annulled the seizure of assets at Italy's biggest bank UniCredit SpA worth 245 million euros (210.4 million pounds), judicial sources said on Monday, in a new development of a tax fraud probe.

Prosecutors will appeal against the Milan court's decision once the reasons for the ruling are filed, the sources said.

The assets were seized in October as part of a probe related to tax declarations for 2007 and 2008.

The investigation centers on suspected tax evasion stemming from a complex financial scheme, known as Project Brontos, set up by Barclays and used by UniCredit.

In the probe, UniCredit's former chief executive, Alessandro Profumo, was put under investigation along with 19 other people, sources said.

UniCredit has denied any wrongdoing.

A Barclays spokesman had no comment on Monday.

News of the probe first emerged in 2009 when police searched UniCredit's offices and obtained electronic data from Barclays.

(Reporting By Ilaria Polleschi. Editing by Jane Merriman)