Emma Watson is to be the new face of Chanel perfume.

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The Harry Potter and the Order of the Phoenix star has won a two-year contract worth UKP3 million to promote Coco Mademoiselle.

The 18-year-old actress will take over from fellow British star Keira Knightley, 23, when her contract ends this summer.

A source said: “Emma has been excitedly telling friends that she is going to be replacing Keira.”

Emma landed the deal with the French fashion house after signing up with top modelling agency Storm in an attempt to branch out from acting.

Chanel has been preparing Emma for her new role by dressing her for film premieres and parties.

A source said: “She has been slowly integrated into the Chanel brand. Once it became clear she is growing into a beautiful young woman and wears the Chanel brand so elegantly, they had to sign her up. Chanel realises it is important to target a young audience.”

Bosses at Warner Bros – who make the Harry Potter films – have given the deal their blessing.