Michael Kors is reportedly set to buy Versace for $2.7 billion.

According to Bloomberg, Donatella Versace - creative director of the Milan-based label - has scheduled a meeting to inform employees of the forthcoming sale.

Reportedly, the details of the agreement are reportedly still being hashed out and there was no immediate comment from either of the fashion companies.

The luxury Italian fashion house was founded in 1978 by Gianni Versace, has been run by his family since he was murdered 21 years ago and currently own 80 per cent of the company.

Sources told the news agency that the family will continue to have input for the label in some capacity, regardless of a sale.

Kors' own eponymous label is known for its more affordable prices, however, the designer has made it his ambition to break into the high-end fashion market and last year Michael Kors Holdings purchased luxury footwear brand Jimmy Choo Ltd, for $1.35 billion.

Versace recently unveiled its spring/summer 2019 collection at Milan Fashion Week with a star-studded catwalk show featuring Shalom Harlow, Kaia Gerber, Gigi and Bella Hadid, Kendall Jenner and Emily Ratajkowski.

The show featured an artful mismatch of bold prints plaids and stripes in both block colours and floral sheer prints.

Guests such as Nicki Minaj, Rita Ora, Rosie Huntington-Whiteley and Luke Evans - who sported the house's signature barocco print - graced the front row of the show.

Speaking at the event, Evans said: ''I think of Versace as being a very brave brand, and I never really thought of myself as a brave person when it came to fashion, but when I put this on, I thought, I could get used to this.''