Following the ceremony at the Basilica of Saint Francis in the central town of Assisi, Merkel and Santos were due to meet acting Italian Prime Minister Paolo Gentiloni, Efe news reported.
Merkel received the award for her "reconciliation efforts in favour of the peaceful coexistence of people".
The lamp is a reminder the Catholic order gives to world leaders that humanity wishes to leave behind the darkness of violence and allow the world to enter the light, organizers said.
Santos was granted the award in 2016 for his efforts to promote a peace process with the now-disbanded FARC rebels, which also won him a Nobel Peace Prize the same year.
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