March 13 (Reuters) -

Donatella Versace is to step down as chief creative officer

of the Versace brand after almost three decades in the role,

owner Capri Holdings ( CPRI ) said on Thursday.

Donatella, 69, will take on the role of chief brand

ambassador from next month, handing over the design reins to

Dario Vitale who joins from Italian luxury brand Miu Miu, part

of the Prada group.

"It has been the greatest honor of my life to carry on my

brother Gianni's legacy. He was the true genius, but I hope I

have some of his spirit and tenacity," said Donatella, who

stepped up after Gianni was killed in Miami in 1997.

"Championing the next generation of designers has always

been important to me. I am thrilled that Dario Vitale will be

joining us, and excited to see Versace through new eyes," she

added.

The move comes amid reports that Prada is

moving closer to a deal to buy Versace from Capri after agreeing

to a price of nearly 1.5 billion euros ($1.6 billion).

(Reporting by Keith Weir, additional reporting by Savyata

Mishra in Bengaluru)