The two brands have been running a television campaign starring Donatella Versace to build hype for the Versace for H&M range.
Creative from the Versace television spot features Versace using a number of contraptions to create a factory line of bleach-blonde models.
The making of the ad has already drawn controversy after a report in the New York Daily News that Versace overruled the retailer's decision to feature "real women".
It is claimed two of the three women were rejected by Versace because they did not fit into the branding.
When contacted by Marketing, H&M issued the following statement: "We are very surprised by the article and do not understand how they came to this conclusion.
"We can only explain it as a misunderstanding and a series of miscommunication. H&M is a democratic fashion brand and it is not our policy to decide models for fashion features in media.
"Both H&M and Versace have, over many years, cast from a wide and diverse pool, not only of models, but of celebrities and personalities reflective of all ethnicities, gender, ages and sizes."
Models Lindsey Wisxon and Daphne Groeneveld star in the ad, which was created in-house and directed by Swedish music, film and television director Johan Renck.
Media planning and buying in the UK is being handled by UM London.
The Versace for H&M range was unveiled in New York in June at a star-studded event attended by Uma Thurman, Jessica Alba and Selma Blair.
H&M has entered a partnership with David Beckham to sell his much-hyped underwear range and last November, it launched a fashion range with luxury Parisian fashion house Lanvin.
Among the other designers to have produced collections are Karl Lagerfeld, Stella McCartney, Roberto Cavalli and Jimmy Choo.
Follow Matthew Chapman on Twitter @mattchapmanuk