The accident occurred when one of the refugee boats started taking in water, which caused people to climb on board the other, which then capsized.
In total, nearly a hundred people are believed to have been on board the two boats that were traveling from Tripoli in Libya.
Around 60 people have been rescued and taken ashore after they were spotted from the air by Italian police aircraft.
So far this year, 675 refugees have died in the Mediterranean, according to UNCHR. Refugees leaving North Africa often cross the sea in leaky or overcrowded boats with the aim of reaching Italy and the rest of Europe.
The route across the Mediterranean is considered one of the deadliest in the world. The total number of refugees who have reached the Italian coast this year is 38,263, according to the country's authorities.
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