Donatella Versace is to step down as the main designer for the Versace brand after almost three decades, a move that has fanned talk of a sale of the business to rival Italian fashion house Prada .

Italian luxury house Versace has named its successor to Donatella Versace, who is stepping down as chief creative officer, a role that she has held since 1997.

Donatella Versace has been replaced as creative director of the fashion house founded by her late brother Gianni Versace, assuming the new role of chief brand ambassador, Versace's U.S. owner Capri Holdings announced on Thursday.