"newspaper," c. 1600, from French gazette (16c.), from Italian gazzetta, Venetian dialectal gazeta "newspaper," also the name of a small copper coin, literally "little magpie," from gazza; applied to the monthly newspaper (gazeta de la novità) published in Venice by the government, either from its price or its association with the bird (typical of false chatter), or both. First used in English 1665 for the paper issued at Oxford, whither the court had fled from the plague.
The coin may have been so called for its marking; Gamillscheg writes the word is from French gai (see jay). The general story of the origin of the word is broadly accepted, but there are many variations in the details:
We are indebted to the Italians for the idea of newspapers. The title of their gazettas was, perhaps, derived from gazzera, a magpie or chatterer; or, more probably, from a farthing coin, peculiar to the city of Venice, called gazetta, which was the common price of the newspapers. Another etymologist is for deriving it from the Latin gaza, which would colloquially lengthen into gazetta, and signify a little treasury of news. The Spanish derive it from the Latin gaza, and likewise their gazatero, and our gazetteer, for a writer of the gazette and, what is peculiar to themselves, gazetista, for a lover of the gazette. [Isaac Disraeli, "Curiosities of Literature," 1835]
Gazzetta It., Sp. gazeta, Fr. E. gazette; prop. the name of a Venetian coin (from gaza), so in Old English. Others derive gazette from gazza a magpie, which, it is alleged, was the emblem figured on the paper; but it does not appear on any of the oldest Venetian specimens preserved at Florence. The first newspapers appeared at Venice about the middle of the 16th century during the war with Soliman II, in the form of a written sheet, for the privilege of reading which a gazzetta (= a crazia) was paid. Hence the name was transferred to the news-sheet. [T.C. Donkin, "Etymological Dictionary of the Romance Languages" (based on Diez), 1864]
GAZETTE. A paper of public intelligence and news of divers countries, first printed at Venice, about the year 1620, and so called (some say) because una gazetta, a small piece of Venetian coin, was given to buy or read it. Others derive the name from gazza, Italian for magpie, i.e. chatterer.—Trusler. A gazette was printed in France in 1631; and one in Germany in 1715. [Haydn's "Dictionary of Dates," 1857]