Coach Ian Foster saw his side recover from 1-0 down, to score two set-piece goals after the break to secure a place in the final.
City’s Callum Doyle was a commanding figure at the back for England, but it was the Italians who struck first on 12 minutes when Brooke Norton-Cuffy clipped Fabio Miretti in the box and the same player tucked home the resulting spot-kick.
England kept their cool and levelled just before the hour-mark as Alex Scott – with his first touch since coming on as sub - rose to head home Alfie Devine’s corner from the right.
And eight minutes from time, England again scored from a corner with Harvey Vale’s set-piece flicked on by an Italian player and headed home by Jarell Quansah from close range to make it 2-1.
Liam Delap was an unused sub, while Doyle completed the full 90 minutes.
England progress into Friday’s final where they will face either France or Israel.
