Australian luxury fashion firm Oroton Group is negotiating an exclusive franchise deal with US-based specialty clothing retailer Gap Inc to "develop the brand" in Australia, New Zealand and the Pacific Islands.

Oroton Group said it has signed a non-binding agreement with Gap's existing Australian franchisee to purchase certain inventory and fit-out, as well as assume operational control of three of the brand's stores starting next month.

A statement from the company added that it will provide further details about the proposed arrangement should the two parties execute binding transaction documents.

Gap opened its first store in Australia three years ago via a franchise agreement with Brand Republic, a subsidiary of Busby Holdings Australia.

The news comes two months after Oroton Group signed a joint venture with US label Brooks Brothers to develop the brand in Australia and New Zealand. Oroton also announced the resignation of its CEO and managing director Sally Macdonald.