Luxury fashion group Prada's CEO Andrea Guerra has flown to New York, a source close to the matter told Reuters, as the group is in talks to buy Capri Holdings-owned Versace in a deal that would unite two of the biggest names in Italian fashion.

The development brings to an end the family control over the creative direction of Versace, a brand beloved of jet-setters and famous for its showy, skin-baring looks and Medusa logo.

Donatella Versace is giving up the creative reins of luxury fashion label Versace after nearly three decades, it was announced Thursday, effectively ending the family's hold over the brand founded by her murdered brother.