Kors could announce a deal as early as this week that values Versace, one of the few remaining fashion businesses under family control, at around $US2 billion ($2.76 billion).
Anonymous sources said Donatella Versace, the brand’s creative director and vice-president, would continue to be involved with the company after the deal.
The iconic boss, who has helped run the company with her brother Santo since the mysterious murder of their middle sibling Gianni in 1997, has called a meeting in Milan on Tuesday to announce the sale, Corriere della Sera reported.
The deal would give Kors the capacity to compete with Paris-based LVMH and Kering and the Swiss company Richemont among global industry giants, analysts said.
The London-based brand last year bought shoemaker Jimmy Choo PLC for about £896 million ($1620 million).
Versace had revenue of €686 million ($1111 million) and returned to profit in 2017, according to figures provided by the company.
