Chanel designer Karl Lagerfeld has called out Meryl Streep for allegedly passing on a custom-made Oscar dress because the couture house refused to pay her to wear it — but her camp insists his claims are false.

According to the 83-year-old creative director, the Oscar winner had ordered an embroidered gray silk gown from Chanel's recent couture collection and asked for it to be made with a higher neckline.

Lagerfeld told WWD that he made a sketch and started to construct the design, but a few days he received a phone call from a member of Streep's team telling him to cancel the order.

He said, she said: Karl Lagerfeld claims Meryl Streep (pictured in Valentino at the 2017 SAG Awards) canceled her order for an Oscars gown because Chanel wouldn't pay for her to wear it

Different stories: The designer (pictured) said a member of Streep's team told him to cancel the order because they'd found someone who would pay her to wear a gown on the red carpet

'Don't continue the dress. We found somebody who will pay us,' he said, quoting the messenger.

Lagerfeld explained that per policy Chanel does not pay celebrities to wear its designs, but that hasn't stopped stars such as Emma Stone and Julianne Moore from wearing the luxury label on the red carpet.

Although the fashion house doesn't pay people to wear its clothes, he pointed out that it is still very costly to gift an A-lister like Streep couture gowns, noting that the dress in question is worth approximately $105,000.

Despite her alleged refusal to wear it to the Dolby Theatre on Sunday for the Academy Awards, Lagerfeld said she could keep the custom-made dress because it is 'perfect for her'.

Eye-catching: Lagerfeld said Streep had ordered a gray silk gown from Chanel's recent couture collection. Models are pictured walking in the Chanel Spring 2017 couture show

Clever: Streep, whose camp said it is against her ethics to be paid to wear a gown, wore Prada to the 2007 Oscars in celebration of her nomination for her role in The Devil Wears Prada

'A genius actress, but cheapness also, no?' he added.

It's probably safe to say that Streep, who is nominated for Best Actress for her role in Florence Foster Jenkins, will not be wearing Chanel to any awards shows in the near future, as she has denied Lagerfeld's claims.

A representative for the actress told The Hollywood Reporter that Lagerfeld's statement is false and it is against Streep's personal ethics to be paid to wear a gown on the red carpet.

However, its not uncommon for celebrities to make money simply by donning certain gowns, jewels, and accessories for big awards shows.

Golden girl: Although Streep has worn Lanvin to the Oscars on three different occasions, she does not have an ambassadorship with the brand. She is pictured in Lanvin at the Oscars in 2012 (left) and 2015 (right)

Five-years running: Celebrity stylist Jessica Paster calls paid relationships between designers and brands 'ambassadorships'. Jennifer Lawrence has been an ambassador for Dior since 2012 (left) and donned the label to the 2016 Oscars (right)

Celebrity stylist Jessica Paster previously revealed that stars can receive up to $250,000 to wear a dress on the red carpet.

Paster was on a panel with fellow stylists Erin Walsh, Brad Goreski, and Brandon Maxel at the 2015 Vulture festival when she lifted the lid on the prevalent practice.

The stylist, who has worked with Cate Blanchett, Emily Blunt, Miranda Kerr, Sandra Bullock, and Rachel McAdams, insisted it is a common occurrence in the industry.

"Jewelry people are paying, shoe people are paying, tampon companies are paying, everyone is paying,' she said.

'It could be just paying the stylist and we get anywhere between $30,000 to $50,0000. Or it's paying the actress something between $100,000 and $250,000.'

Loyal fan: Michelle Williams has starred in numerous handbag campaigns for Louis Vuitton (left), and she wore the luxury brand to this year's Golden Globes (right)

Famous face: Natalie Portman has starred in numerous campaigns for Miss Dior perfume (left), and she showed off her baby bump in a white Dior frock at the 2017 Screen Actors Guild Awards (right)

Paster admitted she has been offered money to dress a client, and she has no problem accepting money if it is the right gown for the person she is working with.

'If it looks gorgeous on you and this is the dress we were going to pick anyway, why not be paid?' she said.

And while Goreski said at the time that he had never been offered money to dress a client in a certain designer, he knows it's not unusual.

'If someone shows up to the Oscars in a black dress and huge statement necklace, chances are they're being paid by a jewelry company,' he noted.

Paster also dished about why some actresses wear the same designer over and over again, and it is all about building a paid relationship between a brand and a celebrity.

Faithful: Blake Lively starred in perfume campaigns for Gucci in 2012 (left) and 2014, and she wore the designer label to the Cannes Film Festival in 2014 (right)

Give and take: Cate Blanchett and Keira Knightly have starred in campaigns for Armani Prive and Chanel, respectively. Cate is pictured in Armani Prive at the 2016 Oscars, and Keira can be seen wearing Chanel at the Golden Globes in 2015

'They're ambassadorships and you start relationships with them (the brand), and then eventually, the actress often does get a campaign from them because they have a relationship with her,' she said.

Oscar winner Jennifer Lawrence has been an ambassador for Dior since 2012, and she frequently wears the label on the red carpet.

Michelle Williams, who is nominated for an Oscar for her role in Manchester by the Sea, is an ambassador for Louis Vuitton and has worn the French luxury label throughout this year's awards season.

Natalie Portman, Cate Blanchett, Keira Knightly, and Blake Lively are also among the A-listers who have worn a certain label's designs on the red carpet after scoring an ad campaign with that particular brand.

Streep famously wore Prada to the 2007 Oscars in celebration of her nomination for her role in The Devil Wears Prada and she has also worn Lanvin to the Academy Awards three times so far, but so-far has never been an ambassador for a particular brand.