Blake Lively has become the new face of CHANEL.

The 'Gossip Girl' actress is the official ambassador for the French fashion house's new Mademoiselle handbag line and will appear in a campaign photographed by Karl Lagerfeld.

The Chanel designer said: "She's a kind of American dream girl. I think she will become a great actress. She's full of life."

The campaign was shot at Chanel's historic Rue Cambon headquarters and Karl was hugely impressed with Blake.

He added to WWD: "It was an easy job because everyone fell in love with her."

Blake - who was introduced to Karl by US Vogue editor Anna Wintour last year - said of her new role: "How did Cinderella feel when she slipped on the glass slipper? How did Snow White feel when she met her Prince Charming? A dream come true is an understatement. I can say that I feel like the happiest, luckiest girl around."

Blake says she has always been a fan of Chanel because the designs never date.

She said: "It is timeless, chic, graceful, intelligent, iconic and ever relevant."

The adverts will be launched in magazines in April.