The deal would turn Jimmy Choo into a wholly-owned subsidiary of Michael Kors.
Jimmy Choo, whose product sales have slowed down in recent years, was put up for sale in April and attracted many suitors.
The move is expected to boost Michael Kors' declining market value.
Jimmy Choo clientele comprised of Princess Diana, Beyoncé
The shoe brand was co-founded in 1996 by Malaysian shoemaker Jimmy Choo who received training at the esteemed Cordwainers Technical College in London along with former Vogue journalist Tamara Mellon.
Since then, the brand has built a dedicated client list which included Princess Diana, singer Beyoncé, Oscar-winner Emma Stone and fashion model Kendall Jenner.
Michael Kors welcomes Jimmy Choo's acquisition
Michael Kors himself, the honorary chairman and chief creative officer of the company that bears his name, said: "We admire the glamorous style and trendsetting nature of Jimmy Choo designs. We look forward to welcoming Jimmy Choo to our luxury group."
Jimmy Choo sale would allow its launch in new markets
Jimmy Choo's sale was backed by the company's main shareholder JAB Holdings.
Michael Kors said the acquisition would provide "the opportunity to grow Jimmy Choo sales to one billion" and "a more balanced portfolio with greater product diversification."
Jimmy Choo would also have the opportunity to expand its presence in the men's luxury footwear category and get exposure to global markets, especially in Asia.
Rival Coach bought Kate Spade
Michael Kors' acquisition of Jimmy Choo comes two months after its rival handbag maker Coach bought quirky fashion brand Kate Spade & Co. The move allowed Coach to enter new markets to attempt boosting fledgling sales.