AsianFin -- Italy's renowned fashion brand, Prada, is reportedly considering the acquisition of the iconic fashion group Versace from U.S.-based Capri Holdings, according to a report by Italian daily Il Sole 24 Ore on Friday.

Citi is serving as an advisor to Prada in the potential deal, the report adds, while Capri Holdings has enlisted Barclay's to explore potential buyers for Versace.

The report also notes that other fashion groups and private equity funds are expressing interest in acquiring Versace, although the brand's valuation is still under discussion. Prada has not commented on the matter.

Last month, Women’s Wear Daily reported that Capri Holdings, the parent company of Versace, Michael Kors, and other luxury brands, was seeking to divest certain brands, including Versace and high-end footwear brand Jimmy Choo, as part of a broader strategy to focus on revitalizing Michael Kors.