Sanrio and its UK licensing agent Fluid World, has struck a deal with Liberty Art Fabrics.
The agreement means that Hello Kitty will now be incorporated with prints from the famous Liberty archive.
The fabric designs will be used to create a limited edition, high-end product range. It will launch exclusively in Liberty, before rolling out to select retail partners.
Products will include children's and tween clothing and accessories, footwear, bedding, stationery, greetings cards, gift wrap and ceramics.
The collection is due to launch in autumn 2011.
"Hello Kitty is the perfect choice to introduce our beautiful prints to a new young customer," said Kirstie Carey, MD of Liberty Art Fabrics. "We are looking forward to developing this exciting collaboration."
Libby Grant, brand director at Fluid World, added: "We are really excited about the Hello Kitty-Liberty Art Fabric collaboration, which sees two truly iconic brands come together at retail to create a beautiful and highly collectable range of products."