The ‘Not Fair’ singer fronted an advertising campaign for the French fashion house’s Coco Cocoon bag last year but her contract has now expired and won’t be renewed and has been replaced by Vanessa Paradis.
A Chanel spokesperson said: “Lily was the face, but now it is Vanessa.”
Sources claim Chanel’s designer Karl Lagerfeld wanted to drop Lily because of her reputation as a party girl and didn’t invite her to recent party at the Cannes Film Festival.
A source said: “Karl had a show and a party, but Lily was not invited. It was Karl’s way of making it clear she is no longer a part of the Chanel family. He instructed his people not to invite her.
“He is very strict about who can represent the brand and there is a feeling that Lily is too much of a party girl.”
Karl is said to have grown tired of Lily’s wild ways especially after she embarrassed herself during a party at his Paris home last year.
The source added: “She got very drunk and had to be taken to the loos to sober up. Karl wasn’t impressed.”
Vanessa – who has two children, Lily-Rose, 10, and eight-year-old Jack with partner Johnny Depp – has been the face of Chanel fragrances for the past two years.