Oscar-nominated actress Keira Knightley has replaced British supermodel Kate Moss as the face of Chanel.

Knightley has signed a £1m contract with the French beauty giants to promote their Coco Mademoiselle perfume.

The 21-year-old will begin appearing in print and television advertisements in 2007, the company announced on Thursday.

"I am really proud to have been asked to work with such an iconic house as Chanel, and thrilled to follow the extraordinary women who have been associated with it before," said Knightley.

"Keira Knightley is a bright, young actress who has already made her mark in a diverse portfolio of films, including her Oscar-nominated performance in Pride & Prejudice," said Chanel artistic director Jacques Helleu in a statement.

Keira Knightley: "I am really proud to have been asked to work with such an iconic house as Chanel."

Moss, 32, has been the face of Coco Mademoiselle since it was launched six years ago.

"Chanel has enjoyed its collaboration with Kate for the last six years, which continues until the end of 2006, and Chanel maintains a close relationship with Kate Moss," Christine Dagousset, executive vice president of fragrance and beauty, told Women's Wear Daily.

"We think Keira is the perfect Coco Mademoiselle woman because she is always incredibly alluring and seductive. What makes Keira exceptional is that she shows strength and independence through the film roles she chooses to play," she added.

Knightley was also named the world's sexiest woman on Thursday.

She beat the likes of Keely Hazel, Scarlett Johansson, Kelly Brook and Angelina Jolie in a poll by FHM magazine.

The survey attracted nearly 2 million votes from British readers of the popular magazine.

Knightley has starred in a number of popular movies, including Pirates of the Caribbean, Star Wars, Love Actually, Bend It Like Beckham and The Hole.