OrotonGroup has signed an exclusive franchise agreement with Gap.
It will replace Melbourne-based Busby in developing the brand across Australia and New Zealand.
Oroton will also have the first right to develop the Banana Republic brand in the same countries, in addition to opportunities with Old Navy.
The franchise agreement is for an initial term of 10 years with an option to renew for a further 10 years.
Oroton can operate free standing stores, department store shop in shops and clearance stores.
Oroton will also have the opportunity to operate a local ecommerce site.
Oroton and Gap may elect to enter into a 50/50 Joint Venture agreement for fair market value after five years in certain circumstances.
Gap also has a purchase option for 100 per cent of the franchised business which it may
exercise any time after five years based on a fair market value basis.
The international giant operates 3,100 company-operated stores and over 300 franchise stores around the world.
Oroton chief Mark Newman said Gap has a strong brand profile.
"This partnership is an endorsement of our skills and expertise in managing premium
international brands in our home country.
"We are looking forward to building on the existing business by rolling out more stores and further strengthening the presence of the brand."
Gap originally entered the Australian market in 2010 through Busby.
The company has since opened just three stores at Westfield CBD, Sydney, Chadstone Shopping Centre and Melbourne Central in Victoria.
Oroton will operate these stores with immediate effect and currently expects to open the first additional stores by summer 2014.
Oroton expects there will be up to 20 Gap stores operational within ten years.