Australian supermodel Miranda Kerr has parted ways with David Jones after five years as fashion ambassador for retail giant.

It is expected Kerr will be replaced by model Jessica Gomes.

Earlier this week, David Jones boss Paul Zahra wasn't given much away by refusing to confirm whether Kerr’s lucrative contract would be renewed after it expires next year.  

“We’re negotiating,” said Zahra on Wednesday. “Those negotiations are confidential and I think once we reach an agreement we will announce it.”

However, this morning the department store confirmed that it had made a decision not to renew her contract, adding that the decision had been a mutual one.

New recruit Gomes joins David Jones long-time brand ambassador Megan Gale and menswear ambassador Jason Dundas at the department store.

Last year, Kerr was announced as an ambassador for Qantas, fronting the airlines Qantas Club push, and is expected to be back in Sydney in April to unveil the airline's new uniforms.