Donatella Versace is to step down from her creative director role at fashion house Versace, after nearly 30 years.

She has held the position since 1997 and took over after the murder of her brother Gianni.

Versace has overseen hundreds of fashion campaigns for the Italian brand, also designing hotels and cars.

The 69-year-old will be replaced by Dario Vitale, who is a former design director for Miu Miu, and take on a new brand ambassador role.

It comes amid speculation that the Prada Group is interested in buying Versace from the Capri Holdings group, who paid €2bn (£1.67m) for the fashion house in 2018.

In a statement issued on Thursday, Capri Holdings said Versace would now “dedicate herself to the support of Versace’s philanthropic and charitable endeavours and will remain an advocate for the brand globally”.

It added that the announcements were part of “a thoughtful succession plan” and credited Vitale as a “strong design leader” whose “talent and vision will be instrumental in Versace’s growth”.

The company statement also thanked Versace for everything she had done for the brand and for playing “an integral role in the company’s global success”.

Versace also posted her own statement on Instagram to her 12 million followers, saying it was “the greatest honour of my life to carry on my brother Gianni’s legacy”.

“Versace is in my DNA and always in my heart,” she said.

“Championing the next generation of designers has always been important to me. I am thrilled that Dario Vitale will be joining us, and excited to see Versace through new eyes.”

Donatella Versace has dressed some of the world’s biggest stars – including Madonna, Beyoncé and Lady Gaga.

She famously designed the green jungle dress for Jennifer Lopez in 2000 and Michelle Obama’s dress for her 2016 final state dinner.

Versace is also an embodiment of the fashion house she has built – always seen in brightly coloured prints that are synonymous with the brand and platinum blonde hair that means she always stands out.

Versace, which was first founded in Milan in 1978 by Donatella and her brothers Santo and Gianni, was sold to the Michael Kors group in 2018, which was then folded in to Capri Holdings in 2019.

The Italian atelier represented 20% of Capri’s 2024 €5.2bn (£4.3bn) revenue.