The expected deal, first reported by Italian daily Il Corriere della Sera last week, would see the Versace family sell its 80 per cent stake and usa private equity firm Blackstone the remaining 20 per cent which it acquired in 2014.
Donatella Versace, pictured in her studio this year, has run the label since her brother was murdered.
USA fashion group Michael Kors Holdings Ltd has sealed an agreement to take control of Italy's Gianni Versace SpA, three sources familiar with the matter said on Monday, adding that an official announcement would be made this week.
Donatella Versace, sister of late founder Gianni who doubles as artistic director and vice-president of the Milan-based group, has called a staff meeting for tomorrow, the day the official announcement could be made, the paper added.
Rumours of an IPO have resurfaced since the company sold a 20 per cent stake to private equity giant Blackstone in 2014.
Versace luxury fashion house 'to be sold shortly': Report
London-based Kors past year snapped up shoemaker Jimmy Choo Plc for about £896 million ($1.2 billion), expanding beyond its namesake brand.
A spokesperson for Michael Kors did not immediately comment on the reports. Kors is also trying to purchase Coach owner Tapestry Inc. The company has been working to cut back on distribution and discounting.
"We believe that the North America retail environment remains highly promotional, which is impacting the long-term brand equity of Michael Kors", Chief Executive John Idol told analysts in 2016, according to a FactSet transcript. The rest of the company is held by the Versace family.
Models present creations at the Versace show during Milan Fashion Week Spring 2019 in Milan on Friday.
In recent years, Versace, which is still a favor among celebrities, has struggled to grow sales and has become second to its Italian rival Gucci, who has found a way to grow, especially among millennials. Donatella serves as creative director, while Santo is chairman.
Russia to send newer, S-300 missile defense systems to Syria
He also said that Russian Federation would start to electronically jam aircraft flying in to attack targets in Syria. Last week's downing has put Russia's relationship with Israel to the test.
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